Suraj Estate Developers IPO listed at 5% discount on D-Street

26 Dec 2023 , 10:11 AM

Realty firm Suraj Estate Developers experienced a subdued market debut on D-Street, as its shares were listed at Rs 340 on the NSE, reflecting a 5.56% discount from the issue price of Rs 360. Similarly, the shares were listed at Rs 343 on the BSE, indicating a discount of 4.50%.

The company’s initial public offering (IPO) garnered significant attention from investors, with a subscription rate of 15.65 times. Investors bid for 12.88 crore shares against the offer size of 82.35 lakh. Among the investor categories, qualified institutional buyers (QIBs) exhibited the highest interest, bidding 24.31 times the reserved portion. Retail investors subscribed 9.30 times, while high net-worth individuals (HNIs) subscribed 18.9 times their allocated portion.

Suraj Estate Developers, specializing in the redevelopment of tenanted properties in Mumbai, primarily focuses on the South-Central region, including Mahim, Matunga, Dadar, Prabhadevi, and Parel. Over the past 37 years, the company has successfully completed 42 projects, encompassing both residential and commercial developments, with 97.62% of them being redevelopment projects.

Proceeds from the IPO, totaling Rs 285 crore, will be allocated to debt repayment, and an additional Rs 35 crore will be utilized for acquiring land or land development rights in the Mumbai Metropolitan Region. The remaining funds from the offering will be earmarked for general corporate purposes.