Mumbai-based real estate players Suraj Estate Developers, one of the market leaders in combined markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel markets has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 500 crore through an initial public offering (IPO) with a fresh issue of shares. The issue has a face value of Rs 5 per equity share for the proposed share sale. The offer is being made through the Book Building Process, wherein at least 75% of the offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders and not more than 10% of the offer shall be available for allocation to retail individual bidders.
According to a company-commissioned Anarock report, it had launched 14 residential projects between 2016 and 2021, with 12 (86%) of them being redevelopment projects. It also has institutional clients like Saraswat Cooperative Bank (Prabhadevi) and Clearing Corporation of India (Dadar), for which it has constructed and sold built-to-suit corporate headquarters.
The proceeds from its fresh issuance worth Rs 315 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and its subsidairy, Rs 45 crore for acquisition of land or land development rights besides general corporate purposes.
Founded in the year 1986 by Rajan Meenathakonil Thomas, Suraj Estate Developers has been developing residential and commercial properties throughout the South Central Mumbai region.
In the South Central Mumbai region, it has completed 42 projects with a total developed area of over 1,046,543 square feet. It also has nine ongoing projects with a total developable area of 1,970,445 square feet and a saleable RERA carpet area of 442,616 square feet, as well as 21 upcoming projects with a total carpet area of 928,400 square feet. It is present in the residential portfolio spanning numerous price points in the “value luxury” and “luxury” segments, with unit values ranging from Rs 10.00 million to Rs 130.00 million.
To compete with competitors such as Macrotech Developers (Lodha Group), Oberoi Realty, Hubtown Developers, and D B Realty, it has formed an integrated in-house project management team that focuses on procurement efficiencies, vendor selection, and construction operations.
It has land parcels in Bandra (West) and Santacruz (East) that will be developed in the future. It had land reserves of 10,359.77 square metres as of December 31, 2021.
Centrum Capital Limited and Anand Rathi Advisors are the book running lead managers to the issue.
