Suraj Estate Developers has filed fresh preliminary papers with the Securities and Exchange Board of India (SEBI) to raise Rs 400 crore through an IPO. The IPO will consist entirely of a fresh issue of equity shares with no offer for sale (OFS) component.
the company plans to use Rs 285 crore of the funds raised to pay off debts availed by the company and its subsidiaries, namely Accord Estates and Iconic Property Developers. Additionally, up to Rs 35 crore would be allocated for the acquisition of land, and the remaining funds will be utilized for general corporate purposes.
It’s worth noting that the utilization of proceeds mentioned in the draft red herring prospectus (DRHP) is subject to change based on various factors and regulatory approvals. Investors and interested parties should carefully review the final prospectus and any subsequent updates from the company to understand the exact allocation of funds.
The company has a significant presence in the real estate sector, with completed projects covering a developed area of over 1.05 million square feet in Mumbai. It is involved in both residential and commercial real estate ventures. Furthermore, the company has 11 ongoing projects and 21 upcoming projects, indicating its continued growth and expansion plans.
In terms of financial performance, Suraj Estate Developers reported a profit of Rs 32 crore in FY23, which represents a 21% increase compared to the preceding fiscal year when it earned Rs 26.50 crore. Additionally, its revenue for FY23 reached Rs 306 crore, marking a 12% growth from the previous year’s revenue of Rs 273 crore.
ITI Capital Ltd and Anand Rathi Advisors Ltd are appointed as the book-running lead managers for the IPO, indicating the parties responsible for managing and executing the IPO process.
