Suraj Estate Developers Limited is launching its IPO. It opens for subscription on 18th December,2023 and will close on 20th December 2023.
What does Suraj Estate Developers Limited do?
Suraj Estate Developers Limited has been actively engaged in real estate development in South Central Mumbai since 1986, focusing on both residential and commercial sectors.
They focus on residential properties in Mahim, Dadar, Prabhadevi, and Parel, emphasizing value luxury, luxury, and commercial segments. They’re venturing into Bandra for residential real estate. Their specialty lies in redeveloping properties with tenants.
With 42 completed projects covering 1,046,543.20 square feet, 13 ongoing projects (20,34,434.40 square feet developable area, 6,09,928 square feet saleable carpet area), and 16 upcoming projects (estimated 7,44,149 square feet carpet area), the company’s track record demonstrates their commitment to real estate development in the region.
Suraj Estate Developers Limited specializes in the construction and development of high-quality residential properties catering to different segments. It focuses on the value luxury market by building premium 1 BHK and compact 2 BHK flats in prime locations, targeting aspirational buyers seeking value for their investment. Additionally, it caters to the luxury segment by constructing upscale 2 BHK, 3 BHK, and 4 BHK flats in South Central Mumbai, appealing to ultra-high net worth and high net worth individuals.
What is the issue size of Suraj Estate Developers Limited IPO?
The entire public offer of the company is a fresh issue of equity shares aggregating up to Rs 400 crores.
Financial information and other valuation metrics
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Total Assets | 942.580 | 863.998 | 792.001 |
| Total revenue | 307.890 | 273.907 | 243.998 |
| Revenue from operations | 305.744 | 272.718 | 239.987 |
| Net Cash inflow / (outflow) | 5.68 | 4.014 | (0.243) |
| Profit after taxes | 32.064 | 26.504 | 6.277 |
| EBITDA | 151.003 | 131.733 | 86.629 |
Schedule of Suraj Estate Developers Limited IPO
| Issue Period | 18th December to 20th December 2023 |
|---|---|
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | December 21, 2023 |
| Initiation of Refunds | December 22, 2023 |
| Credit of Shares | December 22, 2023 |
| Date of Listing | December 26, 2023 |
| Mandate end date | January 05, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | January 20, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | March 20, 2024 |
Risk factors to consider:
- The business heavily depends on the performance of real estate submarkets in South-Central Mumbai. All their ongoing projects are located there, making them vulnerable to risks like economic changes, regulations, natural disasters, and other shifts in this area.
- As of October 31, 2023, there are 216 unsold units in their ongoing projects. Failure to sell these inventories promptly could potentially harm the business, financial condition, and operational outcomes.
- As of October 31, 2023, 16 new projects are in early planning stages and require approvals from the Brihanmumbai Municipal Corporation. These approvals usually last for a year. Delays in meeting conditions or getting necessary approvals may lead to rescheduling ongoing and upcoming projects, affecting operations negatively. Moreover, construction activities must stop if licenses or approvals are withdrawn.
- The company does not perform its construction services but relies entirely on third-party contractors for its projects’ construction.
- Upon listing the Equity shares, the company may be subjected to preemptive monitoring such as additional Surveillance Measures (ASM) and Graded Surveillance Measures (GSM) by Stock Exchanges. These measures aim to bolster market integrity and protect investor interests.
How to apply to the Suraj Estate Developers Limited IPO?
You can apply for the Suraj Estate Developers Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Suraj Estate Developers Limited IPO?
You can check the allotment status for the Suraj Estate Developers Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.