Suraj Estate Developers has filed fresh preliminary papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise Rs 400 crore. This comes after the company had previously filed its draft IPO papers in March 2022.
In this new filing, the IPO consists entirely of a fresh issue of equity shares, with no offer for sale (OFS) component. The company intends to raise up to Rs 400 crore through this IPO.
According to the draft red herring prospectus (DRHP) filed by the company on Monday, the proceeds from the IPO will be utilized for various purposes. Specifically, Rs 285 crore will be used to repay debts incurred by the company and its subsidiaries, namely Accord Estates and Iconic Property Developers. Additionally, up to Rs 35 crore will be allocated for land acquisition, while the remaining funds will be utilized for general corporate purposes.
As of May 2023, the company has an impressive track record in the real estate sector. It has completed 42 projects, covering a developed area of over 1.05 million square feet in Mumbai. Additionally, Suraj Estate Developers currently has 11 ongoing projects and 21 upcoming projects, indicating a significant pipeline of future developments.
In terms of financial performance, the company saw positive growth in FY23. It reported a profit of Rs 32 crore, which is a 21% increase compared to the previous fiscal year when it earned Rs 26.50 crore. Furthermore, the company’s revenue rose to Rs 306 crore in FY23, marking a 12% increase from the Rs 273 crore earned in the preceding year.
With the company’s strong portfolio and financial performance, it aims to raise Rs 400 crore through the IPO, as mentioned in the earlier news.
The book-running lead managers to the issue are ITI Capital Ltd and Anand Rathi Advisors Ltd. These entities will play a crucial role in managing the IPO process and facilitating the offering to investors.
