Suraj Estate Developers is one of the leading 2 developers in terms of supply (in number of units) and rank third in terms of absorption (in number of units) in the residential sub-markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel in the South Central Mumbai region (till Q3) For the calendar years 2016 to 2021. Suraj Estate Developers IPO will hit the stock market in August 2022.
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About Suraj Estate Developers
Suraj Estate Developers Limited has been in the real estate business since 1986, and they specialise in residential and commercial development in the South Central Mumbai area.
Suraj Estate Developers have properties in the “value luxury” and “luxury” divisions across numerous price ranges in their residential portfolio, with unit prices varying from INR 10 million to 130 million.
Suraj Estate Developers have developed and distributed built-to-suit corporate headquarters to their corporate customers, Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited, as part of their commercial portfolio (Dadar).
Suraj Estate Developers Limited propose to create boutique office spaces on Tulsi Pipe Road in Mahim to meet the growing need for smaller local workplaces in the commercial sector.
Business Model
They have been active in the Mumbai real estate sector for over 35 years. Their customer-centric business model prioritises meeting consumer needs across a range of locations, ticket sizes, and configurations.
Their ability to differentiate product offerings through a thorough understanding of the real estate market, design and implementation skills, a powerful brand visibility, and substantial advertising strategies has helped them develop their business successfully.
Their focus on contemporary architecture, solid project execution skills, and quality building has helped them build a strong brand and a great track record in the real estate business.
Their prominence in South Central Mumbai has resulted in great brand memory in local submarkets as well as significant sales recommendations from existing clients.
Presence
Their substantial knowledge & long-standing operations in the South Central Mumbai region present them with significant potential. They are a leading company in redevelopment projects in Mumbai’s South Central area.
They had started 14 residential projects, with 12 of them being redevelopment projects. Through quality-conscious development and specialisation in the redevelopment of tenanted buildings, they have built a reputation in the South Central Mumbai region over the years.
The vast majority of their initiatives are carried out on land that they own or through development agreements with landowners.
Because the majority of land parcels in the South Central Mumbai market are redevelopment projects, their main competency is tenant settlement, which is a critical component for unlocking value on these land parcels.
Suraj Estate Developers IPO
Suraj Estate Developers Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 500 crore on 04 March 2022.
The offer includes a fresh issue of 500 crore and there is no offer for sale (OFS) by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.
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IPO
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Oct-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 835.30 | 792.00 | 709.75 | 597.01 | |
| Total Revenue | 110.43 | 244.00 | 88.94 | 35.81 | |
| Profit After Tax | 11.89 | 6.28 | 1.52 | 1.62 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | (2.22) | (2.22) | 3 |
| Financial Year 2020 | 6.07 | 6.07 | 2 |
| Financial Year 2019 | 4.00 | 4.00 | 1 |
| Weighted Average | 1.58 | 1.58 | |
| 30 Sep. 2021 | (0.70) | (0.70) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The essential characteristics, they feel, enable them to compete successfully in the sector:
- In the residential real estate sector of South Central Mumbai, the established brand has a long term presence in the Value Luxury Segment and Luxury Segment.
- Strong tenant settlement experience in redevelopment projects.
- Portfolio with a wide range of product options at varied pricing points.
- A strong project pipeline ensures cash flow visibility in the near term.
- At a reasonable cost, innovative marketing and sales methods are available.
- Proven track record of effective execution, project management skills, and the ability to deliver projects on time and on budget.
- Promoters with a lot of experience and a solid management team.
Suraj Estate Developers Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Oberoi Realty Limited | 42.85 |
| 2 | 5 | Godrej Properties Limited | (205.86) |
| 3 | 10 | Prestige Estate Projects Limited | 12.05 |
| 4 | 10 | Suntech Realty Limited | 165.97 |
| 5 | 10 | Sobha Limited | 116.78 |
| 6 | 10 | Brigade Enterprises Limited | (214.62) |
| 7 | 10 | Kolte Patil Limited | (375.21) |
| 8 | 10 | Macrotech Limited | 1,072.13 |
| 9 | 10 | Shriram Properties Limited | (17.80) |
| 10 | 2 | Indiabulls Real Estate Limited | 1,093.00 |
| 11 | 10 | Mahindra Lifespace Developers Limited | (21.14) |
Note
- All of the financial data for the listed industry peer described above is consolidated and derived from the listed peer’s annual audited financial results for the fiscal year ending March 31, 2021.
- The P/E Ratio for listed peers was calculated using the closing market price of equity shares on the BSE platform on March 3, 2022.
Suraj Estate Developers IPO Details
| IPO Opening Date | August 2022 |
| IPO Closing Date | August 2022 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 500 Crore |
| Fresh Issue | 500 crore |
| Offer for Sale | 0 |
Suraj Estate Developers IPO Date
Suraj Estate IPO opening date is August 2022, and the closing date is August 2022. The Suraj Estate Developers issue may list in August 2022.
| IPO Opening Date | August 2022 |
| IPO Closing Date | August 2022 |
| Basis of Allotment Date | August 2022 |
| Initiation of Refunds | August 2022 |
| Credit of Shares to Demat Account | August 2022 |
| IPO Listing Date | August 2022 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Suraj Estate IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Suraj Estate Developers Limited IPO.
Suraj Estate Developers IPO GMP
Suraj Estate IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| August 2022 | |||
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Check Out the GMP of all Other IPOs
Suraj Estate IPO Review
Suraj Estate IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Suraj Estate Developers IPO is good or bad.
Suraj Estate IPO Risk
- The Covid-19 epidemic has a negative impact on their company and financial situation, and it may diminish future demand for their projects.
- There are pending legal processes concerning their company, subsidiaries, directors, promoter, and group companies, the outcome of which could have a negative influence on their operations.
- They may be unable to locate and acquire sufficient property or development rights, which could damage their business and growth prospects.
- Their debt, as well as the constraints and limits imposed by their financing arrangements, may jeopardise their ability to conduct business with them.
- Any future negative cash flows will have a negative impact on their cash flow requirements, which will have a negative impact on their capacity to operate the firm.
Other Threats
- Suraj Estate Developers limited have some contingent liabilities that, if realised, could have a negative impact on their business, financial situation, and operating results.
- They have not signed any binding agreements to use a part of the Issue proceeds, and they may invest or utilize the funds in ways that investors may not agree with.
- Their business is significantly reliant on the performance of the real estate submarkets in the South-Central Mumbai region, as well as the variables that effect them.
- Their business entails residential project construction and redevelopment.
- They may be unable to discover and purchase adequate parcels of land for development and renovation, which could stifle their growth and negatively impact their business prospects.
Suraj Estate IPO Brokerage views
once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Suraj Estate Developers IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Suraj Estate IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| August 2022 | 1 | |||||
| August 2022 | 2 | |||||
| August 2022 | 3 |
Suraj Estate Developers Management
Their Promoter, Rajan Meenathakonil Thomas, is the Chairman and MD. He has over 35 years of experience in many parts of the real estate industry.
Rahul Rajan Jesu Thomas, a full-time director with over 15 years of expertise in numerous parts of the real estate business, is part of the management team, as are other professionals with comprehensive expertise in working industries who are instrumental in putting our business strategies into action.
In the South Central Mumbai region, they have executed 42 projects with a total built area of over 1,046,543 square feet.
In addition to the finished projects, they have nine ongoing projects totaling 1,970,445 square feet of developable space and 442,616 square feet of saleable RERA carpet space.
Promoters
- Rajan Meenathakonil Thomas
Promoter’s Holding
| Pre Issue Share Holding | 82.05% |
| Post Issue Share Holding |
Suraj Estate Developers Prospectus
Contact Details
Suraj Estate Developers Limited
301, 3rd Floor, Aman Chambers,
Veer Savarkar Marg, Opp. Bengal
Chemicals, Prabhadevi,
Mumbai 400025, Maharashtra, India
Tel: +91 22 2437 7877
E-mail: [email protected]
Website: www.surajestate.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bhadur Shastri Marg
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Telephone: +91 22 49186200
Email: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Centrum Capital Limited
- Anand Rathi Advisors Limited
We hope we are able to answer all your questions about Suraj Estate Developers IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Suraj Estate IPO Opening Date?
Suraj Estate IPO will open in August 2022.
Suraj Estate IPO Listing Date?
Suraj Estate IPO will list in August 2022.
Suraj Estate IPO GMP Today?
Suraj Estate Developers IPO Grey Market Premium is INR 0 .
Suraj Estate IPO Allotment Date?
Suraj Estate IPO basis of allotment will be in August 2022.
Lot size for Suraj Estate IPO?
Lot size for Suraj Estate IPO is 0.
