Suraj Estate Developers to Launch Rs 400 Crore IPO on December 18th

8 Dec 2023 , 12:37 PM

Mumbai-based Suraj Estate Developers is set to launch its initial public offering (IPO) on December 18, aiming to raise Rs 400 crore. Following Doms Industries, this marks the second IPO opening this month.

The anchor book for the IPO will be available for a day on December 15, and the offer is scheduled to close on the third day, i.e., December 20.

The public offer exclusively comprises a fresh issue of shares worth Rs 400 crore, with no offer-for-sale component. The net proceeds from the fresh issue will be allocated for debt repayment of Rs 285 crore, and Rs 35 crore will be utilized for the acquisition of land or land development rights in the Mumbai Metropolitan Region. The remaining funds will be earmarked for general corporate purposes.

As of September 2023, the company has a total outstanding consolidated borrowing of Rs 568.83 crore. Suraj Estate Developers plans to utilize the entire amount allocated for land acquisition or development rights during FY24-FY25.

Since its inception in 1986, the company has successfully completed 42 projects covering a developed area of over 1.05 million square feet in South-Central Mumbai. Currently, it has 13 ongoing projects with a developable area of 2.03 million square feet, a saleable carpet area of 0.6 million square feet, and 16 upcoming projects with an estimated carpet area of 0.7 million square feet.

Suraj Estate, 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 ended March FY23. The revenue for the same period increased by 12.1% to Rs 305.7 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 14.6% year-on-year to Rs 151 crore, with a margin expansion of 110 basis points at 49.4% due to lower input costs.

For the quarter ending June FY24, the net profit stood at Rs 14.53 crore on revenue of Rs 102.41 crore.

ITI Capital and Anand Rathi Advisors are the appointed merchant bankers for the IPO.