Suraj Estate Developers IPO subscribed fully on day 2

19 Dec 2023 , 02:10 PM

Suraj Estate Developers’ initial public offering (IPO) has garnered significant attention from investors, witnessing a subscription of 1.69 times on December 19 by 2 pm, the second day of bidding. Investors pouring bids for 1.39 crore shares against the issue size of 82.35 lakh. Click here to subscribe the IPO.

Retail investors led the subscription, booking 2.86 times the allotted quota, while high net worth individuals (HNIs) acquired 1.04 times of their allotted shares. Qualified institutional buyers showed interest by subscribing to 12% of the shares reserved for them.

The IPO, set to close on December 20, has a price band of Rs 340-360 per share, and it involves a fresh issue of 1.11 crore shares, amounting to Rs 400 crore. The Mumbai-based real estate company attracted institutional investors ahead of the IPO, securing shares worth nearly Rs 120 crore through the anchor book.

Institutional investors participating in the anchor book include BNP Paribas Financial Markets, Societe Generale-ODI, Quantum-State Investment Fund, and IEGFL-Multi Opportunity.

Suraj Estate Developers plans to use the net fresh issue proceeds strategically. A significant portion, Rs 285 crore, will go towards repaying debt, and Rs 35 crore will be allocated for the acquisition of land or land development rights in the Mumbai Metropolitan Region. The remaining funds will be earmarked for general corporate purposes.

Iti Capital Ltd and Anand Rathi Securities Limited are the book-running lead managers for the IPO, ensuring a smooth process. Link Intime India Private Ltd has been appointed as the registrar for the issue, managing the documentation and shareholder-related activities.