Suraj Estate Developers IPO - Complete Overview

Established in 1986, Suraj Estate Developers has been actively engaged in the real estate sector, focusing on both residential and commercial developments within the South Central Mumbai region. Their latest endeavour involves entering the residential real estate market in the Bandra submarket.

Within their residential portfolio, Suraj Estate Developers caters to the "value luxury" and "luxury" segments, offering a diverse range of units spanning from Rs. 10.00 million to Rs. 130.00 million. In the commercial domain, they have successfully constructed and sold bespoke corporate headquarters to institutional clients such as Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar). Responding to the growing demand for smaller independent offices, the company is set to diversify into the development of boutique office spaces on Tulsi Pipe Road, Mahim.

Suraj Estate Developers Limited boasts a significant residential portfolio concentrated in Mahim, Dadar, Prabhadevi, and Parel. These areas, constituting sub-markets of the South Central Mumbai micro-market, underscore the company's strong market presence, positioning them as leaders in these locales. In terms of supply, they hold the top position among the top ten developers with a 15.92% market share. Similarly, their dominance is evident in absorption, where they lead with a 16.99% market share among the top ten developers.

Suraj Estate Developers IPO Overview

Suraj Estate Developers IPO date is slated to be open for subscription from December , 2023, to December , 2023. This BSE, NSE IPO follows a Book Built Issue IPO.

Suraj Estate Developers IPO price is fixed at Rs. 340 to Rs. 360 . The upcoming BSE, NSE IPO will be listed on December 26, 2023.

The total issue size of this IPO amounts to Rs. 400.00 CR. Within this total issue, 35% is issued to retail investors, and 15% is issued to other investors.

 

Detailed Video

 

 

Suraj Estate Developers timetable (Tentative)

Events	Date
IPO Opening Date	18 December 2023
IPO Closing Date	20 December 2023
IPO Allotment Date	21 December 2023
Refund initiation	22 December 2023
IPO Listing Date	26 December 2023

 

Suraj Estate Developers IPO Details

IPO opening & closing date	18 December to 20 December 2023
Face value	Rs. 5  per Share
Issue Price	Rs. 340 to Rs. 360  per Share
Lot Size	41 Shares
Price of 1 Lot	Rs. 14,760
Total Issue Size	11,111,111 Shares (aggregating up to Rs. 400.00 Cr)
Fresh Issue	11,111,111 Shares (aggregating up to Rs. 400.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Suraj Estate Developers IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	41
Maximum Lot Investment (Retail)	13 lot	533
Minimum Lot Investment (HNI)	14 lot	574

 

Suraj Estate Developers IPO Reservation

QIB Shares Offered	50.00%
Retail Shares Offered	35.00%
Other Shares Offered	15.00%

 

Company Financial

(Amount in Crore)

Period	Jun 30  FY 23	Mar 31  FY 23	Jun 31 FY 23
Total Assets	994.73	942.58	864.00
Total Revenue	102.81	307.89	273.91
PAT	14.53	32.06	26.50
Net worth	86.11	71.39	39.16
Reserve & Surplus	70.29	55.48	23.32
Total Borrowings	598.50	593.09	638.16

 

Revenue By operations

Company's revenue from operations in Q1 FY23 is ₹1,024.10 crore, contributing to a total FY23 revenue of ₹3,078.90 crore, up from ₹2,739.07 crore in FY22. Other operating income for Q1 FY23 is ₹4.04 crore, totaling ₹21.46 crore for FY23.

(amount in Crore)

Particulars	Jun 30 FY 23	Mar 31 FY 23	Mar 31 FY 22
Revenue from operations	1,024.10	3,057.44	2,727.18
Other Operating Income	4.04	21.46	11.89
Total Revenue from operations	1,028.14	3,078.90	2,739.07

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

1. Repayment/Prepayment of the aggregate outstanding borrowings of the Company and the Subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private  Limited and Skyline Realty Private Limited.

2. Acquisition of land or land development rights and

3. General corporate purposes.

 

Promoters and Management of Suraj Estate Developers IPO

1. Mr. Rajan Meenathakonil Thomas

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	74.95%

Suraj Estate Developers IPO Lead Managers

• Iti Capital Ltd

• Anand Rathi Securities Limited

 

Peers of Suraj Estate Developers IPO

Company has a revenue of ₹3,057.44 million. The Price/Earnings ratio (P/E) is 10.10, indicating the stock's valuation relative to its earnings. The Earnings Per Share (EPS) is ₹10.10, reflecting the company's profitability on a per-share basis.

Name of the company	Revenue from Operation	P/ E (x)	EPS (Basic) (₹)
Suraj Estate Developers Limited	3,057.44	35.64	10.10
Oberoi Realty Limited	41,925.82	20.44	52.38
Sunteck Realty Limited	3,624.47	3,724.50	0.10
Keystone Realtors Limited	6856.6	79.58	7.67
Shriram Properties Limited	6,744.03	17.02	3.88
Mahindra Lifespace Developers Limited	6,066.10	73.91	6.56
D B Realty Limited	6982.396	-25.85	-2.94
Hubtown Limited	3,190.90	10.93	4.16

 

IPO's Valuations

To evaluate the Suraj Estate Developers IPO's valuation, we can utilize the information presented in the company's DRHP and RHP.  Suraj Estate Developers IPO price is fixed at Rs. Rs.340 to Rs.360 per share, with an EPS of Rs. 10.10. The company's P/E ratio is calculated at 35.64 based on the issue price.

 

Dividend Policy

According to Suraj Estate Developers IPO DRHP and RHP, the company did not distribute dividends in the preceding fiscal years, and its capacity to declare dividends in the future hinges on its earnings and financial health.

 

 

IPO's Strengths

1. Diversified Portfolio: The company has a diversified portfolio, engaging in both residential and commercial developments. Their foray into boutique office spaces indicates adaptability to market demands.

2. Redevelopment Initiatives: Suraj Estate Developers has undertaken redevelopment projects, providing free redevelopment for over 1,011 tenants. This commitment to redevelopment aligns with regulatory require

 

IPO's Weaknesses

1. Borrowing Levels: The company has substantial borrowings, with total borrowings amounting to ₹598.50 crores as of the latest financial period. High levels of debt can pose a risk, especially if interest rates rise or the company faces economic challenges.

2. Dependence on Mumbai Market: Suraj Estate Developers  concentration in the South Central Mumbai region may expose the company to market-specific risks. Economic downturns, regulatory changes, or local market fluctuations could impact the company's performance.

 

 

IPO GMP Today

The Last Grey Market Premium (GMP) of Suraj Estate Developers IPO was Rs. 15.

 

Conclusion

Suraj Estate Developers presents a mixed picture for potential investors. While the company has established a strong market presence in key Mumbai sub-markets and has a diversified portfolio, it faces challenges such as high levels of debt and a limited dividend history. Investors should carefully assess the company's financial health, market positioning, and future growth prospects before making investment decisions.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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