Suraj Estate Developers Resubmits Rs 400 Crore IPO Draft Papers
In a bid to raise capital for expansion, Suraj Estate Developers, a prominent player in the real estate industry, has recently submitted fresh draft papers to the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offering (IPO). The company aims to secure Rs 400 crore through the IPO, signaling its confidence in the market.
This is not the first time Suraj Estate Developers has explored the IPO route. The Mumbai-based realty firm had previously filed its IPO draft papers in March 2022. However, the new proposal represents an entirely fresh issue of equity shares, with no offer for sale (OFS) component, as outlined in the latest draft red herring prospectus (DRHP) filed on Monday.
According to the DRHP, the company plans to allocate the raised funds strategically. A substantial portion, amounting to Rs 285 crore, will be utilized to pay off existing debts incurred by the company and its subsidiaries, namely Accord Estates and Iconic Property Developers. Additionally, the company earmarks up to Rs 35 crore for the acquisition of land, while the remaining funds will be allocated for general corporate purposes.
Suraj Estate Developers has an impressive track record in both residential and commercial real estate ventures. As of May 2023, the company has successfully completed 42 projects, covering an extensive area of over 1.05 million square feet in Mumbai. Furthermore, it currently has 11 ongoing projects and an exciting pipeline of 21 upcoming projects, indicating its commitment to further growth and development.
The financial performance of Suraj Estate Developers has been noteworthy, showcasing its stability and potential for investors. In the fiscal year 2023, the company recorded a remarkable profit of Rs 32 crore, marking a significant 21 percent increase compared to the preceding year’s profit of Rs 26.50 crore. The company’s revenue also displayed steady growth, rising to Rs 306 crore in FY23 from Rs 273 crore in the previous fiscal, reflecting a commendable 12 percent increase.
To ensure a successful IPO, Suraj Estate Developers has enlisted the expertise of ITI Capital Ltd and Anand Rathi Advisors Ltd, who will act as the book-running lead managers to the issue. Their combined experience and market knowledge are expected to maximize the offering’s potential and attract the interest of potential investors.
About Suraj Estate Developers:
Suraj Estate Developers Pvt. Ltd. functions as a real estate developer, providing a range of services including residential and commercial construction, acquisition, and development. The company serves customers in India.
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