On the concluding day of the bidding process this Wednesday, the inaugural share offering from Suraj Estate Developers witnessed an impressive subscription rate of 15.65 times. According to data from NSE, the Initial Public Offer (IPO) garnered bids for 12,88,46,559 shares, far surpassing the 82,35,293 shares available for subscription.
The Qualified Institutional Buyers (QIBs) segment experienced an overwhelming subscription of 24.31 times, while the non-institutional investors' quota received robust interest with an 18.90 times subscription. The Retail Individual Investors (RIIs) category also witnessed strong demand, securing a subscription rate of 9.30 times. The date of allotment is proposed to be 21st December, 2023.
The initial public offering (IPO) of the Mumbai-based company featured a share price range of Rs 340 to Rs 360. Notably, the IPO constituted an exclusive issuance of new equity shares totaling Rs 400 crore, devoid of any Offer for Sale (OFS) component. This means that the entire IPO proceeds were directed towards the infusion of fresh equity into the company, emphasizing a focus on capital expansion and growth.
Last Friday, Suraj Estate Developers announced the successful collection of Rs 120 crore from anchor investors. The generated proceeds are earmarked for several strategic purposes, primarily aimed at fortifying the financial position of the company and its subsidiaries, namely Accord Estates and Iconic Property Developers.
A significant portion of the funds is allocated for the repayment of debts undertaken by Suraj Estate Developers and its subsidiaries. This proactive measure is geared towards enhancing the financial stability of the entities involved, contributing to a healthier balance sheet.
Additionally, a portion of the funds will be directed towards the acquisition of land, signalling the company's commitment to expanding its real estate portfolio. Land acquisition is a pivotal step in ensuring the future development and growth of Suraj Estate Developers, potentially leading to the creation of new projects and ventures.
Moreover, part of the collected funds will be utilized for general corporate purposes. This flexible allocation allows Suraj Estate Developers to address various operational needs, seize strategic opportunities, and further strengthen its overall business infrastructure.
In essence, the utilization of the Rs 120 crore from anchor investors reflects a well-rounded approach by Suraj Estate Developers, balancing debt reduction, expansion through land acquisition, and supporting general corporate requirements to foster sustained growth in the real estate sector.
Suraj Estate Developers has developed real estate across the residential and commercial sectors in the South-Central Mumbai region and has a residential portfolio located in the markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel.
The offer was managed by ITI Capital and Anand Rathi Advisors. The equity shares are proposed to be listed on NSE and BSE.
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