Suraj Estate Developers is poised to make its stock market debut on Tuesday, and leading up to the listing, the company’s shares are trading at a premium of Rs 20 in the unlisted market. Considering the upper price band of Rs 360, analysts anticipate a modest 5% premium upon listing.
It’s crucial to note that grey market premiums serve as an indicator of the company’s standing in the unlisted market and are subject to rapid changes.
Subscription Details of Suraj Estate Developers IPO
The Suraj Estate Developers IPO garnered a substantial oversubscription of over 15.65 times at closure. The retail segment witnessed a 9.3 times subscription, while the non-institutional category boasted an impressive subscription rate of 18.9 times.
Utilization of IPO Proceeds
The net proceeds from the fresh issue are earmarked for repaying the company’s and its subsidiaries’ debts, acquiring land or land development rights, and covering general corporate expenses.
Insights into Suraj Estate Developers
With a robust presence of over 36 years in Mumbai’s real estate market, Suraj Estate Developers have been actively involved in developing residential and commercial properties in South Central Mumbai. Ranked among the top ten developers by supply (in number of units), the company operates in both the residential and commercial real estate sectors.
Catering to the “value luxury” and “luxury” segments, Suraj Estate Developers offer a diverse range of properties ranging from Rs 1 crore to Rs 13 crore. Noteworthy achievements include constructing and selling built-to-suit corporate headquarters to institutional clients, such as Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).
The company’s future plans include venturing into the development of boutique office spaces on Tulsi Pipe Road, Mahim, to meet the rising demand for smaller independent offices in the commercial segment.
In the fiscal year FY23, Suraj Estate Developers recorded a profit of Rs 32.06 crore, marking a significant 20.98% increase from the previous year. The revenue during FY23 surged by 12% to Rs 306, attributed to heightened sales from new projects in the value luxury segment and additional floor transactions in commercial projects.
Profit margins also saw an improvement, rising to 10.49% in fiscal 2023 from 9.72% in fiscal 2022.