Suraj Estate IPO: Suraj Estate Developers Limited IPO Details

Suraj Estate IPO: The Indian financial market is abuzz with anticipation as Suraj Estate Developers Limited gears up for its initial public offering (IPO). With a total issue size of ₹400.00 crores, this IPO promises to be a significant event for investors looking to capitalize on the real estate sector. In this blog, we will delve into the details of the Suraj Estate Developers IPO, its objectives, financial performance, and what it means for potential investors.

Also See: Suraj Estate Developers IPO GMP

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Suraj Estate Developers IPO Overview

  • IPO Name: Suraj Estate Developers IPO
  • IPO Dates: December 18, 2023, to December 20, 2023
  • Basis of Allotment: December 21, 2023
  • Listing Date: December 26, 2023
  • Face Value: ₹5 per share
  • Price Band: ₹340 to ₹360 per share
  • Lot Size: 41 Shares
  • Total Issue Size: 11,111,111 shares (aggregating up to ₹400.00 Cr)
  • Issue Type: Book Built Issue IPO
  • Listing At: BSE, NSE
  • Shareholding Pre Issue: 33,250,000
  • Shareholding Post Issue: 44,361,111

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Suraj Estate Developers IPO Reservation

The Suraj Estate Developers IPO offers 7,777,777 shares, with allocation as follows:

  • Qualified Institutional Buyers (QIB): 2,222,222 shares (28.57%)
  • Non-Institutional Investors (NII): 1,666,666 shares (21.43%)
  • Retail Individual Investors (RII): 3,888,889 shares (50.00%)
  • Retail Investors (RII) will receive a minimum of 41 shares each.
  • In case of oversubscription, 967 shares (sNII) and 1,935 shares (bNII) will be allotted, with a minimum lot size of 574 shares.

Also See: All IPO GMP Price Today

Suraj Estate Developers IPO Lot Size

Investors can bid for a minimum of 41 shares and in multiples thereof. The table below illustrates the minimum and maximum investment options for retail investors and High Net Worth Individuals (HNIs):

ApplicationLotsSharesAmount (₹)
Retail (Min)14114,760
Retail (Max)13533191,880
S-HNI (Min)14574206,640
S-HNI (Max)672,747988,920
B-HNI (Min)682,7881,003,680

Also See: Upcoming IPO in India

Suraj Estate Developers IPO Promoter Holding

Mr. Rajan Meenathakonil Thomas is the promoter of Suraj Estate Developers Limited. The shareholding before the IPO stands at 100%, which is expected to reduce to 74.95% post-issue.

Suraj Estate Developers IPO Objectives

The company intends to utilize the net proceeds from the IPO for the following purposes:

  1. Repayment/Prepayment of the aggregate outstanding borrowings of the company and its subsidiaries, Accord Estates Private Limited and Iconic Property Developers Private Limited.
  2. Acquisition of land or land development rights.
  3. General corporate purposes.

Also Read: When Can a Company Go for IPO in India

Suraj Estate Developers Limited: Financial Information

As of March 31, 2023, Suraj Estate Developers Limited reported a 12.41% increase in revenue and a 20.98% rise in profit after tax (PAT) compared to the previous fiscal year ending March 31, 2022.

Period Ended30 Jun 202331 Mar 202331 Mar 202231 Mar 2021
Assets994.73942.58864.00792.00
Revenue102.81307.89273.91244.00
Profit After Tax14.5332.0626.506.28
Net Worth86.1171.3939.1629.15
Reserves and Surplus70.2955.4823.3222.94
Total Borrowing598.50593.09638.16600.48
Amount in ₹ Crore

Also Read: IPOs This Week: 12 Companies to Raise Over Rs 4,600 Crore in Funds as IPO Frenzy Continues

About Suraj Estate Developers Limited

Established in 1986, Suraj Estate Developers Limited is a prominent real estate construction company. The company primarily focuses on developing residential and commercial real estate projects in the South Central Mumbai region.

It’s worth noting that Suraj Estate Developers Limited does not engage in in-house construction services. Instead, it relies entirely on third-party contractors for the construction of its projects.

The company boasts an impressive track record with 42 completed projects in the South-Central Mumbai region. Additionally, it has 13 ongoing projects and 16 upcoming projects.

Some of Suraj Estate Developers’ notable projects include Suraj Eleganza-II, ICICI Apartments, CCIL Bhavan, Tranquil Bay-I, Elizabeth Apartment, Mon Desir, St. Anthony Apartments, Lumiere, Tranquil Bay-II, and many others.

As of September 30, 2023, the company, along with its subsidiaries, employed 126 permanent employees.

In the residential sector, Suraj Estate caters to both the “Value Luxury” and “Luxury” segments, with unit values ranging from ₹10.00 million to ₹130.00 million. In the commercial segment, it has constructed corporate headquarters for notable institutional clients, including Saraswat Cooperative Bank Limited, National Stock Exchange of India, Union Bank of India, and Clearing Corporation of India Limited.

Also Read: What is an IPO?- Why Companies Go Public

Key Performance Indicators

  • Market Cap: ₹1597 Cr
  • Price/Earnings Ratio (P/E): 35.64
  • Post P/E (x): 49.81
  • Return on Equity (ROE): 58.18%
  • Return on Capital Employed (ROCE): 21.93%
  • Debt/Equity Ratio: 8.31
  • Earnings per Share (EPS): ₹10.1
  • Return on Net Worth (RoNW): 58.18%

Suraj Estate Developers IPO Registrar

The registrar for the Suraj Estate Developers IPO is Link Intime India Private Ltd. You can contact them at the following details:

Suraj Estate Developers IPO Lead Manager(s)

The lead managers for the Suraj Estate Developers IPO are Iti Capital Ltd and Anand Rathi Securities Limited.

Suraj Estate Developers IPO Timeline (Tentative Schedule)

  • IPO Opens: December 18, 2023
  • IPO Closes: December 20, 2023
  • Basis of Allotment: December 21, 2023
  • Initiation of Refunds: December 22, 2023
  • Credit of Shares to Demat: December 22, 2023
  • Listing Date: December 26, 2023
  • Cut-off time for UPI mandate confirmation: 5 PM on December 20, 2023
Suraj Estate IPO

In conclusion, the Suraj Estate Developers IPO presents an opportunity for investors to participate in the growth of a well-established real estate developer with a strong track record and promising financial performance. However, as with any investment, it’s crucial to conduct thorough research and seek advice from financial experts before making investment decisions.

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