Suraj Estate Developers Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹360
Per ShareLot Size
41 Shares
Minimum Investment
₹14,760
Issue Size
₹400 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Suraj Estate Developers Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
82.05%
Promoter Holding (Post-Issue)
61.5%
Issue Type
Book Building
ISIN
INE843S01025
About the Company
Suraj Estate Developers Limited has been involved in the real estate business since 1986 and develop real estate across the residential and commercial sectors in South Central Mumbai region. The Company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market where it has established its presence. The Company is focused primarily on value luxury, luxury segments and commercial segment. It is now venturing into residential real estate development in Bandra sub-market.
Industry Overview
It is a globally established fact that demographic shifts fundamentally affect the demand for real estate. India's large population base of over 1.37 bn provides a huge domestic demand base which attracts businesses from across the world to setup their operations here. Along with rising population, India's urbanization rate is also increasing at a fast pace. As per UNDP projections, by 2046 approx. 50% of population in India will be urban. However, rapid urbanization is expected to drive the demand for housing, offices and other real estate asset classes in the medium - long term. UNDP has projected that there will be 8 cities with a population of 10 mn & above by the year 2035 in India, highlighting the unmet housing demand.
Company History
Suraj Estate Developers Limited was originally incorporated as `Suraj Estate Developers Private Limited', a private limited company under the Companies Act, 1956 at Mumbai, Maharashtra, pursuant to a certificate of incorporation dated September 10, 1986 issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC"). Subsequently, the Company was converted into a public limited company, pursuant to a special resolution of the shareholders of the Company dated October 30, 2021 and the name of the Company was changed to `Suraj Estate Developers Limited' and a fresh certificate of incorporation dated December 9, 2021 was issued by the RoC.
Products & Services
- The Company is among the prominent residential real estate developers, focused primarily on construction and development of residential and commercial projects, in and around sub market of South Central Mumbai.
Growth Strategy
- Enhance its leading market position in the South Central Mumbai region by leveraging its Upcoming Projects
- Continue to focus on redevelopment projects through asset light model
- Continue to pursue its differentiated product offerings in value luxury segment.
- Continue to expand Land Reserves in South Central Mumbai region and opportunistically build its position in other sub markets within MMR region
- Continue to selectively develop Commercial Projects in the South Central Mumbai region
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 11,111,111^ equity shares of face value Rs. 5 each ("Equity Shares") of Suraj Estate Developers Limited ("The Company" or the "Issuer") for cash at a price of Rs. 360 per equity share (including a securities premium of Rs. 355 per equity share) ("Issue Price"), aggregating to Rs. 400.00 crores^ (the "Issue"). The issue constitutes 25.05% of the post-issue paid-up equity share capital of the company. The face value of equity shares is Rs. 5 each. The issue price is 72 times the face value of the equity shares. ^Subject to finalization basis the allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company has established brand with a long standing presence in Value Luxury Segment and Luxury Segment in the residential real estate market of South Central Mumbai region;
- The Company has diversified portfolio encompassing product offerings across various price points in value luxury and luxury segments;
- The Company has expertise in tenant settlement in the redevelopment projects in residential sub-markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel;
- Its marketing and sales strategies
- The Company has an experienced promoter and management team with its Chairperson and Managing Director who is also its Promoter, having over thirty six (36) years of experience in various aspects of real estate business.
- Its business is dependent on the performance of, and the conditions affecting, the real estate sub markets in the South-Central Mumbai region. As of October 31, 2023, the company did not have any ongoing projects in any other areas apart from South Central Mumbai. Consequently, the company is exposed to risks from economic, regulatory and other changes as well as natural disasters in the South Central Mumbai region, which in turn may have an adverse effect on its business, results of operations, cash flows and financial condition.
- Any uncertainty in its title to the company real estate assets could have a material adverse impact on its current and future revenue.
- Its redevelopment projects require compliance of the provisions of Regulation 33(7) of the Development Control and Promotion Regulation, 2034. The compliance inter alia involves tenant settlement, approvals from MHADA & MCGM, construction of the tenant and saleable portion units.
- Its Inability to complete the company Ongoing Projects and Upcoming Projects by their respective expected completion dates or at all could have a material adverse effect on its business, results of operations and financial condition.
- As of October 31, 2023, the company has total 216 unsold units in its Ongoing Projects. If its not able to sell the company project inventories in a timely manner, then it may adversely affect its business, results of operations and financial condition.