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Suraj Estate Developers a Mumbai based developer gets Sebi approval for IPO

The developer filed its papers with SEBI in March’22 to take out an IPO comprising fresh issue of shares aggregating to Rs 500 crore with no offer for sale component.

 

On Monday the Mumbai based Suraj Estate Developers received the Securities and Exchange Board of India (SEBI) nod for its proposed initial public offering (IPO).

The developer filed its papers with SEBI in March’22 to take out an IPO comprising fresh issue of shares aggregating to Rs 500 crore with no offer for sale component.

The issue has a face value of Rs 5 per equity share for the proposed share sale. The offer is being made through the Book Building Process, wherein at least 75% of the offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders.

The income from the company’s fresh issuance worth Rs 315 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and its subsidiary, Rs 45 crore for acquisition of land or land development rights besides general corporate purposes.

In the financial year FY21, the company, Suraj Estate Developers booked a profit of Rs 6.28 crore against Rs 1.52 crore last year. Revenue during the year FY21 increased significantly to Rs 239.99 crore from Rs 86.93 crore in the previous year, a big jump of 176.08%. Profit for the seven-month period ended October 2021 stood at Rs 11.90 crore on revenue of Rs 109.62 crore.

As per the recent reports from Anarock- India’s leading independent real estate services company, Suraj Estate Developers had launched 14 residential projects between 2016 and 2021, with 12 (86%) of them being redevelopment projects. It had land reserves of 10,359.77 square metres as of December 31, 2021, which it aims to grow in the coming years.

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Ruchika Bhalla

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Ruchika Bhalla

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