Suraj Estate Developers has joined the long list of companies looking to raise money from Dalal Street investors. The real estate firm filed draft IPO (Initial Public Offering) papers with the capital markets regulator SEBI (Securities and Exchange Board of India) on Monday. Suraj Estate Developers is looking to raise Rs 500 crore through the public issue, which will entirely be a fresh issue of equity shares. The IPO pipeline remains strong despite concerns around LIC’s issue. Currently, 49 IPO applications have been issued observations by SEBI and could hit the primary market soon.
According to Suraj Estate Developer’s draft red herring prospectus (DRHP), the company will issue fresh equity shares of face value Rs 5 each, aggregating to Rs 500 crore. Primarily, the company looks to repay or prepay its aggregate outstanding borrowings along with those of its subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private Limited, and Skyline Realty Private Limited. According to the DRHP, this will cost the firm Rs 315 crore. Some of the funds raised through the IPO will go towards the acquisition of land or land development rights while the remaining will be put to use for general corporate purposes.
About the company
Suraj Estate Developers has been involved in the real estate business since 1986 and develops real estate across the residential and commercial sectors in the South Central Mumbai region. According to the current shareholding pattern of Suraj Estate Developers, the promoter and promoter group of the company holds a 95% stake in the company. Suraj Estate Developers have been making a profit in the last few years.
Suraj Estate Developers IPO details
The IPO of Suraj Estate developers will have a 75% reservation for Qualified Institutional Buyers (QIB). Non-Institutional Investors (NII) will get to bid for 15% of the issue while retail investors will be left with 10% of the total issue. Centrum Capital and Anand Rathi Advisors are the book running leads managers to the issue. Shares of the company will be listed on the BSE and NSE.
Upon listing on the stock exchanges, the company is looking to join peers such as Oberoi Realty, Godrej Properties, Prestige Estate Projects, Shriram Properties, and many more.
