Suraj Estate Developers IPO subscribed 71% on day 1, Check details inside

18 Dec 2023 , 05:19 PM

The initial public offering (IPO) of Suraj Estate Developers Limited witnessed a subscription of 71% on the first day of bidding, December 18. The total bids received amounted to 58,81,532 equity shares against the issue size of 82,35,293 shares. The retail portion was oversubscribed by 1.24 times, indicating strong interest from individual investors. Click here to subscribe the IPO

High net worth individuals (HNIs) subscribed to 28% of their allocated shares, while qualified institutional buyers (QIBs) subscribed to 12% of the shares reserved for them. The IPO, closing on December 20, is priced in the range of Rs 340-360 per share, with the company aiming to raise Rs 400 crore through a fresh issue of 1.11 crore shares.

Institutional investors had previously shown interest in Suraj Estate Developers, investing nearly Rs 120 crore in the company through the anchor book, launched on December 15. The Mumbai-based realty company, owned by Rajan Meenathakonil Thomas and family, reported a 21% year-on-year growth in net profit at Rs 32.06 crore for the fiscal year ending March 2023. In the quarter ending June 2024, the net profit stood at Rs 14.53 crore on revenue of Rs 102.41 crore.

Suraj Estate Developers specializes in the development of residential and commercial real estate in the South Central Mumbai region. Notably, the company relies entirely on third-party contractors for construction services, distinguishing itself from in-house construction practices.