Suraj Estate Developers Limited is coming up with an IPO that consists of a fresh issue of shares worth INR 400 crores. The company will utilize the raised funds for debt reduction, land acquisition, and general corporate purposes.
Suraj Estate Developers Limited IPO – Important Details
| Suraj Estate Developers Limited IPO Date | December 18, 2023 to December 20, 2023 |
| Suraj Estate Developers Limited IPO Listing Date | December 26, 2023 |
| Suraj Estate Developers Limited IPO Price | INR 340 to 360 per share |
| Suraj Estate Developers Limited IPO Lot Size | 41 Shares |
| Suraj Estate Developers Limited IPO Total Issue Size | INR 400 crores |
| Suraj Estate Developers Limited IPO Basis of Allotment | December 21, 2023 |
| Suraj Estate Developers Limited IPO Initiation of Refunds | December 22, 2023 |
| Suraj Estate Developers Limited IPO Credit of Shares to Demat | December 22, 2023 |
| Suraj Estate Developers Limited IPO Issue Type | Book Built Issue IPO |
| Suraj Estate Developers Limited IPO Listing At | BSE, NSE |
Suraj Estate Developers Limited IPO – Company Profile
Suraj Estate Developers Limited is a significant residential portfolio located in the markets of Mahim, Dadar, Prabhadevi, and Parel, which are sub-markets of the South Central Mumbai micro-market where we have established their presence and are one of the market leaders in these locations.
They have been involved in the real estate business since 1986 and develop real estate across the residential and commercial sectors in the South Central Mumbai region. They are now venturing into residential real estate development in the Bandra sub-market.
They have a longstanding presence of over thirty-six (36) years in the Mumbai real estate market. Their customer-centric business model addresses customer requirements in various locations, ticket sizes, and configurations. Their ability to deliver differentiated product offerings through their deep understanding of the real estate market, design and execution capabilities, strong brand presence, and extensive marketing initiatives has helped them grow their business successfully.
Suraj Estate Developers Limited IPO – Fundamental Analysis
Suraj Estate Developers displays improving profitability and equity but faces concerns over modest revenue growth, declining ratios, and inefficient inventory management. Further due diligence is recommended before investing.
Revenue Growth:
Modest revenue growth over the years, but not substantial.
Equity:
A consistent increase in equity indicates potential capital infusion or retained earnings.
Expenses:
While expenses have increased, they’ve been manageable in revenue.
Profit After Tax:
A steady rise in profit after tax, demonstrating improved profitability over the years.
Return on Net Worth (RoNW):
There’s been a significant increase in RoNW from 2021 to 2022 but a decline in 2023. Still, the percentages are relatively healthy.
Earnings Per Share (EPS):
Diluted EPS has shown an upward trend, showcasing improved earnings attributable to each outstanding share.
Net Asset Value (NAV) per Equity Share:
Significant fluctuations in NAV per share, possibly due to changes in asset values or capital structure.
Debt to Equity Ratio:
A decreasing trend in the debt-to-equity ratio is positive, indicating lower reliance on debt for financing.
Current Ratio:
Declining current ratio may suggest potential challenges in meeting short-term obligations.
Inventory Turnover Ratio:
The inventory turnover ratio is exceptionally low, which might indicate slow-moving inventory or inefficient inventory management.
Suraj Estate Developers IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 2,399.87 | 2,727.18 | 3,057.44 |
| Equity (₹ in Million) | 293.65 | 393.81 | 715.13 |
| Expenses (₹ in Million) | 2,349.52 | 2,377.56 | 2,646.78 |
| Profit and Loss After Tax (₹ in Million) | 62.77 | 265.04 | 320.64 |
| RoNW (%) | 23.62% | 77.22% | 58.18% |
| NAV per Equity Share (₹) | 45.90 | 12.33 | 22.49 |
| Diluted EPS only (₹) | 1.98 | 8.35 | 10.10 |
| Total Assets (in million) | 7,920.01 | 8,639.98 | 9,425.80 |
| Total Liabilities (in million) | 7,626.36 | 8,246.17 | 8,710.67 |
| Debt Equity Ratio | 20.60 times | 16.29 times | 8.31 times |
| Current Ratio | 2.61 | 1.99 | 1.72 |
| Inventory Turnover Ratio | 0.30 times | 0.30 times | 0.26 times |
Suraj Estate Developers IPO Peer Comparison
In the real estate sector, Suraj Estate Developers stands out with a high Return on Net Worth (RoNW) of 58.18% and basic EPS of ₹10.10, despite lower revenue compared to peers like Oberoi Realty and Sunteck Realty. Keystone, Shriram, and Mahindra Lifespaces show moderate performance, while D B Realty exhibits negative P/E and EPS.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Suraj Estate Developers Limited | 3,057.44 | 5 | – | 10.10 | 10.10 | 58.18% | 22.49 |
| Oberoi Realty Limited | 41,925.82 | 10 | 20.44 | 52.38 | 52.38 | 16.83% | 335.81 |
| Sunteck Realty Limited | 3,624.37 | 1 | 3,724.50 | 0.10 | 0.10 | 0.62% | 198.45 |
| Keystone Realtors Limited | 6,856.60 | 10 | 79.58 | 7.67 | 7.67 | 6.29% | 146.59 |
| Shriram Properties Limited | 6,744.03 | 10 | 17.02 | 3.88 | 3.88 | 5.63% | 70.58 |
| Mahindra Lifespace Developers Limited | 6,066.10 | 10 | 73.91 | 6.56 | 6.56 | 5.64% | 116.75 |
| D B Realty Limited | 6,982.40 | 10 | (25.85) | (2.94) | (2.94) | (5.93%) | 60.69 |
| Hubtown Limited | 3,190.90 | 10 | 10.93 | 4.16 | 4.16 | 2.03% | 171.03 |
Suraj Estate Developers IPO Objective
Suraj Estate Developers Limited aims to strategically reduce existing borrowings, fortify leverage capacity for future growth, acquire land in the Mumbai Metropolitan Region for diverse project development, and allocates remaining funds for general corporate purposes, meeting ordinary business expenses and addressing difficulties.
- Repayment/Prepayment of the aggregate outstanding borrowings of the Company and its subsidiaries, Accord Estates Private Limited and Iconic Property Developers Private: Suraj Estate Developers Limited, along with its subsidiaries, intends to utilize INR 285 crores from the Net Proceeds to strategically reduce existing borrowings strategically, aiming to enhance financial flexibility, lower debt servicing costs, and fortify leverage capacity for future business development and expansion initiatives.
- Acquisition of land or land development rights: Suraj Estate Developers Limited aims to acquire land in Mumbai strategically, utilizing INR 35 crores from net proceeds. Objectives include maintaining a disciplined capital structure, maximizing returns, developing a diverse project pipeline, leveraging brand recall, and meeting residential demand in the luxury and value segments.
Suraj Estate Developers Ltd IPO Risks And Challenges
Suraj Estate confronts substantial risks and heavily depends on South Central Mumbai’s real estate market. Economic, regulatory, and market uncertainties pose challenges. Additionally, the capital-intensive nature of the business, coupled with potential construction cost fluctuations, threatens financial stability and growth.
- Suraj Estate faces substantial risk and dependency on South Central Mumbai’s real estate market. Factors beyond control, such as economic conditions, regulatory changes, and market fluctuations, pose challenges, potentially impacting financial stability and project valuations. Liquidity constraints and a potential sharp decline in real estate prices pose significant risks.
- The company is vulnerable to significant price hikes, taxes, and material shortages in construction, risking cost overruns and delays. Fluctuations in construction materials, contract labor, and equipment supply may adversely impact estimated costs and project timelines.
- The company’s capital-intensive business relies heavily on real estate financing for land acquisition and development. The availability of such financing on acceptable terms, if at all, poses a crucial risk to the company’s operations and growth.
Suraj Estate Developers IPO – Industry & Market Potential
The details about pent-up demand and robust consumer sentiment for home ownership post-pandemic, leading to a strong recovery in the residential housing sector, indicate a positive market potential. Increased housing launches and sales and growing unsold inventory suggest opportunities and challenges developers should consider.
The projection that 50% of India’s population will be urban by 2046 highlights a significant market potential for real estate developers. The increasing urbanization trend indicates a growing demand for housing and infrastructure, offering developers opportunities to cater to the needs of an urbanizing population.
The information on India’s substantial growth in education and a rise in per capita GNI at a CAGR of over 8% suggests a positive correlation between education, economic development, and potential real estate demand. Higher education levels and improved socio-economic parameters often increase demand for quality housing, benefiting real estate developers.
Suraj Estate Developers Limited IPO – Type of Offer
Suraj Estate Developers Limited is preparing to introduce an Initial Public Offering (IPO) with a fresh share offering worth INR 400 crores. The company plans to utilize the funds for purposes such as reducing debt, acquiring land, and covering general corporate expenses.
Suraj Estate Developers Limited IPO Offer Size
Suraj Estate Developers Limited is set to launch an Initial Public Offering (IPO) featuring a new share issuance valued at INR 400 crores. The company intends to use the proceeds for debt reduction, land acquisition, and general corporate purposes.
Suraj Estate Developers Ltd IPO Allotment Structure
Suraj Estate Developers Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an Suraj Estate Developers Ltd IPO?
To apply for the Suraj Estate Developers India Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Suraj Estate Developers India Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Suraj Estate Developers India Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Suraj Estate Developers India IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Suraj Estate Developers India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Suraj Estate Developers India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Suraj Estate Developers India Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Suraj Estate Developers India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Suraj Estate Developers India IPO Offer Registrar
The registrar for the Suraj Estate Developers India Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 022-4918 6200
Email: [email protected]
Website: www.linkintime.co.in
Suraj Estate Developers India Limited IPO FAQs
1. What is the allotment date of the Suraj Estate Developers India Limited’s IPO?
The allotment date will be finalized on December 21, 2023, and the allotted shares will be credited to the customer’s demat account by December 22, 2023.
2. What is the price band of the Suraj Estate Developers India Limited’s IPO?
The price band of the shares issue is INR 340 – 360 per share.
3. What is the size of Suraj Estate Developers India Limited’s IPO?
Suraj Estate Developers India Limited is set to launch an Initial Public Offering (IPO), featuring a new share issuance valued at INR 400 crores. The company intends to use the proceeds for debt reduction, land acquisition, and general corporate purposes.
4. What is the listing date of Suraj Estate Developers India Limited’s IPO?
The listing date of the issue is December 26, 2023.
Click the link to access the web story now: Suraj Estate Developers India Limited IPO
