Suraj Estate Developers Ltd IPO

Upcoming

IPO Synopsis

Realty firm Suraj Estate Developers has filed a draft red herring prospectus (DRHP) with SEBI to raise funds worth Rs.500 crores via an initial primary offering. 
The funds will be raised through fresh issuance of equity shares.
The promoter and promoter group hold about 94.89 per cent stake in the company, of which Rajan Meenathakonil Thomas (promoter) holds 82.05 per cent stake.
Centrum Capital and Anand Rathi Advisors are the book running leads managers to the issue.
 
Objective of the Issue
The net proceeds from the issue will be issued for 
1) prepayment/repayment of borrowings worth Rs.315 crore
2) Rs.45 crore will be utilized towards the acquisition of land or land development rights
 

About Suraj Estate Developers Ltd

Suraj Estate Developers has been involved in the real estate business since 1986, and develops real estate across the residential and commercial sectors in the South Central Mumbai region. The company holds a 15.25 per cent share in terms of the number of units supplied in the suburban areas of Mumbai including Mahim, Matunga, Dadar, Prabhadevi and Parel region for the calendar year 2016-2021.
The company has a residential portfolio in the 'value luxury' and 'luxury' segments, ranging from Rs 1 crore to Rs 13 crore. In our commercial portfolio, we have constructed and sold built-to-suit corporate headquarters to our institutional clientele namely, Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar). To cater to the increasing need for smaller independent offices in the commercial segment, we plan to foray into developing boutique office spaces on Tulsi Pipe Road, Mahim.
The company identifies cessed/ non-cessed properties with existing tenants, and tie up with the landlords of such tenanted properties by entering into a development agreement or on outright purchase basis through conveyance deed. It also provides good quality housing free-of-cost to the existing tenants/ occupants of redevelopment properties. Thus, majority of the projects executed on the land owned by the company or through development agreements with land-owners. 
The company works with a host of leading architects, namely Sanjay Puri Architects and Vivek Bhole Architects Private Limited.

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 240.0 86.9 34.6
EBITDA 86.6 66.6 54.4
PAT 6.3 1.5 1.6
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 792.0 709.8 597.0
Share Capital 6.4 6.4 6.4
Total Borrowings 600.5 497.4 371.1
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities -14.93 -31.71 -53.18
Net cash from / (used in) investing activities -6.84 -14.66 -4.22
Net cash flow from / (used in) financing activities 26.96 44.81 59.28
Net increase (decrease) in cash and cash equivalents 5.19 -1.56 1.88

Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
Suraj Estate Developers 240.0 2.0 45.9 NA 21.54%
Oberoi Realty Limited 2052.6 20.3 257.7 42.9 7.89%
Godrej Properties Limited 764.9 -7.5 299.3 -205.9 -2.28%
Prestige Estate Projects Limited 7264.4 36.3 166.5 12.1 21.81%
Suntech Realty Limited 613.9 3.0 197.5 166.0 1.51%
Sobha Limited 2109.8 6.6 256.0 116.8 2.57%
Brigade Enterprises Limited 1950.0 -2.2 111.3 -214.6 -1.97%
Kolte Patil Limited 691.7 -0.7 117.6 -375.2 -0.62%
Macrotech Limited 5448.6 1.0 116.2 1072.1 0.87%
Shriram Properties Limited 431.5 -4.6 56.4 -17.8 -8.15%

Indiabulls Real  Estate Limited

1521.4 0.1 77.1 1093.0 0.12%

Mahindra Lifespace Developers Limited

166.2 -14.0 317.4 -21.1 -4.40%
Omaxe Limited 475.7 -12.9 76.8 -7.2 -16.74%


The Key points are:-

Key Points

  • Strengths

    1) 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 
    2) Diversified portfolio encompassing product offerings across various price points
    3) Strong project pipeline providing near term cash flow visibility 
    4) Strong expertise in tenant settlement in the redevelopment projects
    5) Innovative marketing and sales strategies

  • Risks

    1) There are certain outstanding litigation proceedings involving our Company, Subsidiaries, Directors, Promoter and Group Companies
    2) Unsuccessful in identifying and acquiring suitable land or development rights
    3) Certain unsecured loans have been availed by our Company (As on December 31, 2021, the total unsecured loans stood at ₹ 793.64 million)
    4) The company had certain contingent liabilities, which if may materialize
    5) The company is exposed to risks from economic, regulatory and other changes as well as natural disasters in the South-Central Mumbai region and the overall performance of real estate sector.

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the minimum lot size and investment required for the Suraj Estate Developer IPO?

Suraj Estate Developer IPO details are yet to be announced.

What is the price band of the IPO?

Suraj Estate Developer IPO details are yet to be announced.

When does the Suraj Estate Developer issue open and close?

Suraj Estate Developer IPO details are yet to be announced.

What is the size of Suraj Estate Developer IPO issue?

The IPO comprise of fresh issue of shares worth Rs.500 crores. 

Who are the promoters/key personnels of Suraj Estate Developer?

Suraj Estate Developer is promoted by Rajan Meenathakonil Thomas

What is the allotment date of Suraj Estate Developer?

Suraj Estate Developer IPO details are yet to be announced.

What is the Suraj Estate Developer listing date?

Suraj Estate Developer IPO details are yet to be announced.

Who are the book runners for Suraj Estate Developer IPO?

Centrum Capital and Anand Rathi Advisors are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used for: 
1) prepayment/repayment of borrowings worth Rs.315 crore
2) Rs.45 crore will be utilized towards the acquisition of land or land development rights

How to apply for the Suraj Estate Developer IPO?

To apply for the IPO, follow the steps given below
1) Login to your 5paisa account and select the issue in the current IPO section
2) Enter the number of lots and price at which you wish to apply for
3) Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4) You will receive a mandate notification to block funds in your UPI app

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