MUMBAI - Suraj Estate Developers, a prominent real estate firm based in Mumbai, is set to launch its initial public offering (IPO) on December 18, with the goal of raising Rs 400 crore. The company has announced that this capital infusion will be directed towards debt reduction, land acquisition, and general corporate purposes.
The IPO consists exclusively of new shares, with no offer-for-sale component. Prior to the public offering, on December 15, the anchor book for the IPO will be available for subscription for one day. Interested investors will have until December 20 to participate in the subscription window, which will remain open for three days.
Suraj Estate has outlined a strategic plan for the use of the funds raised from the IPO. A significant portion, amounting to Rs 285 crore, is earmarked for settling existing debts. The company's debt currently stands at Rs 568.83 crore as of September. Additionally, Rs 35 crore will be allocated for acquiring land rights within the Mumbai Metropolitan Region. The focus of these investments will be on high-end residential areas in Bandra and mid-market housing in Dadar and Mahim, all prime zones within South-Central Mumbai.
The company's decision to go public comes on the heels of strong financial performance indicators from FY23. Suraj Estate Developers reported a net profit increase to Rs 32.06 crore and revenue growth to Rs 305.7 crore. Moreover, EBITDA saw a robust growth of 14.6%, signaling a healthy operational performance.
Since its establishment in 1986, Suraj Estate has successfully completed over forty projects and is currently managing thirteen ongoing constructions with an additional sixteen projects planned for future development.
ITI Capital and Anand Rathi Advisors are serving as merchant bankers for this highly anticipated IPO venture, guiding Suraj Estate through the complexities of going public.
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