Suraj Estate Developers Ltd. IPO
Suraj Estate Developers Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹360
Issue Price
Listing Price
₹344
Listing Price
Listing Gains
-₹16.20 (-4.50%)
Listing Gains
IPO Details
Bidding Dates
18 Dec - 20 Dec '23
Bidding Dates
Min. Investment
₹13,940
Min. Investment
Lot Size
41.00
Lot Size
Price Range
₹340 - ₹360
Price Range
Issue Size
378 Cr
Issue Size
Subscription Rate
- Retail Individual Investor9.30x
- Non-Institutional Investor18.90x
- Qualified Institutional Buyers24.31x
- Employees
About Company
Suraj Estate Developers Limited is a real estate construction company founded in 1986. The company builds residential and commercial real estate in the South Central Mumbai area. The business does not provide any in-house construction services and is entirely reliant on third-party contractors to complete its Projects. Suraj Estate Developers Limited has finished 42 properties in the South-Central Mumbai area and has 13 ongoing projects.
Suraj Eleganza-II and ICICI Apartments, CCIL Bhavan (Phase-I up to 6th floor) and Tranquil Bay-I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and Tranquil Bay-II, and others are among the company's projects.
The fresh issue portion of the IPO of Suraj Estate Developers Ltd comprises the issue of 1,11,11,111 shares (111.11 lakh shares approximately), which at the upper price band of ₹360 per share translates into a fresh issue size of ₹400.00 crore.
Important Dates - Suraj Estate Developers IPO
| Application opens on | 18th December 2023 |
| Last date of application | 20th December 2023 |
| Date of Allotment | 21st December 2023 |
| Refund begins from | 22nd December 2023 |
| Credit of shares to Demat | 22nd December 2023 |
| Listing date | 26th December 2023 |
Why should you invest in Suraj Estate Developers Ltd. IPO?
While Suraj Estate Developers gained recognition for its speciality play in Regulation 33 (7) of DCPR, some of the notable projects such as ICICI Apartments, NEAT House, Saraswat Bank Bhavan, CCIL Bhavan, and others provided credentials for its working style. The business has shown consistent growth in the reported periods, and management is confident that this will continue with the work on hand and the land parcel bank. The issue looks to be fully priced based on FY24 annualised earnings. Investors can lodge money for the medium to long term.
Suraj Estate Developers IPO Grey Market Premium
| Date | GMP |
|---|---|
| 15th December | Rs.65 |
| 14th December | Rs.55 |
Suraj Estate Developers IPO Noteworthy Highlights
- Since there is no Offer For Sale (OFS) component in the Suraj Estate Developers IPO, the fresh issue portion will also double as the overall size of the IPO.
- The fresh issue portion will mainly be used for repayment/prepayment of borrowings of the company and also for the borrowings of its subsidiaries. A part of the funds will go towards the acquisition of land and land development rights. The remaining portion will be utilised for general corporate purposes.
Suraj Estate Developers Ltd. IPO - SWOT Analysis
Strengths
Suraj Estate Developers is a strong brand and has created a presence in the industry by operating for more than 30 years and developing 42 projects in total. The company has generated positive cash flow in the last two years. The company is also venturing into residential real estate development in the Bandra sub-market which will bring more visibility to the brand.
Weaknesses
The company is very dependent on third-party contractors for construction services making the operations vulnerable. As Suraj Estate Developers operate in a capital-intensive industry, most of their funds will be utilised to repay debt.
Opportunities
Improved access to home loans and more demand for office space are all projected to fuel growth. Rising income levels will also help it scale up, as will increased demand for luxury houses and business space. Furthermore, since the implementation of the RERA Act, there has been an increasing desire for organised participants.
Threats
The company operates in a highly fragmented market and faces immense competition in terms of growth and revenue. As of June 2023, the company’s net debt-to-equity ratio stood at 6.4 times.
Financial Snapshot - Suraj Estate Developers
Check out the financial performance of Suraj Estate Developers for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2021 | Rs 489.62 crore | Rs 164.25 crore | Rs 6.12 crore |
| March 2022 | Rs 563.20 crore | Rs 204 crore | Rs 14.88 crore |
| March 2023 | Rs 721.25 crore | Rs 246 crore | Rs 37.96 crore |
A competitive analysis
Suraj Estate Developers has Oberoi Realty Limited, Keystone Realtors Limited, Shriram Properties Limited and Mahindra Lifespace Developers Limited as its peers. Take a look at their performances:
Competitive Analysis - Suraj Estate Developers Ltd. IPO
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| Oberoi Realty Limited | 54,142 | 63.78% |
| Keystone Realtors Limited | 6,710 | 14.21% |
| Shriram Properties Limited | 2,025 | 45.83%td> |
How to apply for Suraj Estate Developers Ltd. IPO?
You can apply for the Suraj Estate Developers Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Suraj Estate Developers Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
