Mumbai-based Suraj Estate Developers has filed its DRHP with the markets regulator SEBI seeking to raise Rs 500 crore through IPO
MUMBAI, Mar 7 (The CONNECT) - Mumbai-based Suraj Estate Developers has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) seeking 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.
The Mumbai-based firm is one of the market leaders in redevelopment projects in the South-Central Mumbai sub markets. According to a company-commissioned Anarock report, Suraj 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 Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar), for which it has constructed and sold built-to-suit corporate headquarters.
The proceeds amounting to Rs. 315 crores will go for the repayment or prepayment of borrowings, 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. They are among the top two developers with 15.25% market share in terms of supply and rank third with 13.50% market share in terms of absorption in the residential sub-markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel in South Central Mumbai for calendar years 2016 to 2021.
Through its emphasis on contemporary architecture, strong project execution capabilities, and quality construction, the realtor has established a strong brand and a successful track record in industry.
The company 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 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 one crore to Rs 13 crores
Competing with realtor majors 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 also has an in-house sales team, customer relationship team, and after-sales team, as well as a distribution network of multiple non-exclusive and select channel partners across India that caters to key high networth individuals and non-returning Indians from the property booking stage to final delivery.
It had land reserves of 10,359.77 square metres as of December 31, 2021, which it aims to grow in the coming years by utilising the complete FSI potential of more than 2.
Suraj Estate Developers clocked a profit of Rs 6.28 crore in the financial year FY21 against Rs 1.52 crore in the previous year. Revenue during the year FY21 increased significantly to Rs 239.99 crore from Rs 86.93 crore in the previous year.
Centrum Capital Limited and Anand Rathi Advisors Limited are the book running lead managers to the issue.
