Suraj Estate to raise ₹500 Crore via preferential allotment

20 Aug 2024 , 10:34 AM

Suraj Estate Developers Ltd. said on Monday that its board has approved raising funds of ₹500 Crore through the sale of preferential shares to eligible shareholders and warrants convertible into equity shares.

The company will first issue 56.05 lakh equity shares with a face value of ₹5 apiece to shareholders at an issue price of ₹714, totalling ₹400.24 Crore.

The preferential share issuance price is 12.8% lower than the real estate developer’s share price as of Monday’s close.

Notable persons who will be awarded preferential shares include Vanaja Sundar Iyer, who already owns 1.02% of the stake in the company through Si Investments and Broking Pvt. Ltd. as of the June quarter.

Another name on the list is Kewal Kiran Clothing, a listed entity that will receive 2.5 lakh equity shares of the company on a preferential basis. Kewal Kiran Clothing had no prior involvement in the company.

The company will issue 13.3 lakh convertible warrants to Ramesh Sawalram Saraogi at a price of ₹750 per warrant, representing an 8.4% decrease from Monday’s closing price and totalling ₹99 Crore. Ramesh Saraogi’s Navratri Share Trading Pvt. Ltd. held a 2.03% interest in the company at the end of the June quarter.

Every warrant awarded will be convertible into one equity share within 18 months of the date of allocation.

Suraj Estate is one of the final few IPOs of 2023 to list on the bourses. The stock has more than doubled in value since its initial issuance price of ₹360 per share.

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