Suraj Estate Developers IPO sets to open on December 18; Announced price band at Rs 340-360 per share

13 Dec 2023 , 09:43 AM

Suraj Estate Developers, a prominent player in Mumbai’s real estate landscape, is set to make waves with its Rs 400-crore initial public offering (IPO), offering a compelling investment opportunity. Here’s everything you need to know about the public issue.

Key Details:

• Price Band: Rs 340-360 per share
• IPO Size: Rs 400 crore
• Subscription Period: December 18 to December 20, 2023
• Anchor Book Opening: December 15, 2023

Fund Utilization: Suraj Estate Developers’ IPO comprises only a fresh issue component, ensuring that the entire net issue proceeds, excluding IPO expenses, will directly benefit the company. The primary allocation includes:

• Debt Repayment: Rs 285 crore to reduce outstanding consolidated debt.
• Land Acquisition and Development: Funds allocated for acquiring land or land development rights.
• General Corporate Purposes: Utilization for furthering the company’s overall corporate objectives.

Issue Structure:

• Investor Categories: 50% reserved for qualified institutional investors, 15% for high net-worth individuals, and 35% for retail investors.
• Lot Size: Bids accepted in multiples of 41 equity shares, with a minimum lot size of 41 shares.

Retail Investor Insights:

• Minimum Investment: Rs 14,760 for 41 shares
• Maximum Investment: Rs 1,91,880 for 533 shares
• Investment Limit: Retail investors are capped at Rs 2 lakh for this IPO.

Established in 1986, Suraj Estate Developers, led by the Rajan Meenathakonil Thomas family, boasts a rich legacy. The company has successfully completed 42 projects, covering over 1.05 million square feet in South-Central Mumbai. With 13 ongoing projects and 16 upcoming ventures, Suraj Estate Developers is positioned for sustained growth, contributing significantly to Mumbai’s real estate expansion.

The IPO’s merchant bankers are ITI Capital and Anand Rathi Advisors.