The IPO of Suraj Estate Developers received bids for 1,99,30,592 shares as against 82,35,293 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 2.42 times.

The issue opened for bidding on Monday (18 December 2023) and it will close on Wednesday (20 December 2023). The price band of the IPO is fixed at Rs 340-360 per share. An investor can bid for a minimum of 41 equity shares and in multiples thereof.

The IPO is entirely a fresh Issuance of equity shares with no offer for sale component. The issue comprises fresh issue of equity shares worth Rs 400 crore.

Of the net proceeds of the issue, the company intend to spend Rs 285 crore towards repayment and prepayment of the aggregate outstanding borrowings of the company and its subsidiaries; Rs 35 crore towards acquisition of land or land development rights and balance for general corporate purposes.

As of 30 September 2023, the company had total financial indebtedness of Rs 568.83 crore and of which about 13.61% is unsecured loans.

Ahead of the IPO, Suraj Estate Developers on Friday, 15 December 2023 raised Rs 119.99 crore from anchor investors. The board allotted 33.33 lakh shares at Rs 360 each to 11 anchor investors.

Suraj Estate Developers, founded in 1986 by Rajan Meenathakonil Thomas, is a Mumbai-based real estate developer, with development across the residential and commercial sectors in the south-central Mumbai region. The company specialise in the redevelopment of tenanted properties.

With over 36 years of presence in the real estate market, it has completed 42 projects with a developed area of more than 1,046,543.20 square feet in the south-central Mumbai region.

The firm reported a net profit of Rs 14.53 crore and income from operations of Rs 102.41 crore for the six months ended on 30 September 2023.