Suraj Estate Developers IPO: What you need to know

Suraj Estate Developers IPO

Exploring the dynamic world of initial public offerings, I’ve got my eye on a particularly intriguing entry: Suraj Estate Developers IPO. With a massive fresh issue of 111 crore shares totaling Rs 40,000 crores, it’s set to make waves in the market.

The buzz is real, and the timeline is tight – this IPO opens on December 18, 2023, and will only accept subscriptions until December 20, 2023. If you’re keen on understanding the potential impact of this IPO and what it means for investors like us, you’re in the right place.

Stay tuned as I dive into the details, from recommendations and subscription status to allotment nuances and frequently asked questions. This could be the investment opportunity you’ve been waiting for, and I’m here to break it all down for you.

Suraj Estate Developers IPO Details

In the heart of the financial world, the Suraj Estate Developers IPO stands out as a significant event on the market’s horizon. Between December 18, 2023, and December 20, 2023, potential investors like myself will have the opportunity to subscribe to this much-anticipated offering.

Diving into the technicalities, the Face Value of the shares is pegged at ₹5 per share, signaling an accessible entry point for those eager to be part of the Suraj Estate family. With a Price Band of ₹340 to ₹360 per share, investors have a range to consider based on their investment strategies and the company’s perceived value.

For those wondering about the scale of investment, the Lot Size is set at 41 shares, which means that minimum investment figures are clearly defined, allowing for systematic financial planning. The Total Issue Size of 11,111,111 shares, aggregating up to ₹400.00 Cr, is composed entirely of a Fresh Issue, ensuring that new capital is brought into the company to fuel future growth and development.

Marking the transformation from private to public, this Book Built Issue IPO will culminate in the listing at the BSE and NSE platforms I’ve consistently followed for their robust trading environments and transparency.

Looking at pre and post-issue shareholding patterns, there’s a noticeable shift – from 33,250,000 shares pre-issue to 44,361,111 shares post-issue. Such metrics are invaluable for understanding the dilution and potential shift in stock dynamics post-IPO.

As I navigate the intricate landscape of IPOs, understanding these details isn’t just a matter of due diligence; it’s essential to making informed decisions that could shape my financial future. Sharing this knowledge empowers more people to engage with the market with confidence and clarity. The Suraj Estate Developers’ leap into the public domain is more than just an event; it’s a testament to the company’s growth trajectory and future aspirations.

Suraj Estate Developers IPO Timeline

Getting a grip on the IPO timeline of Suraj Estate Developers is crucial if you’re planning to participate. The subscription window opens on December 18, 2023, and you’ve got until December 20, 2023, to stake your claim on the shares. That’s a narrow three-day window where you’ll need to move quickly and decisively.

Post-subscription, you can expect the company to finalize the basis of allotment by December 21. This date’s essential if you’re keen on understanding whether you’ve made the cut. The very next day, on December 22, those investors who weren’t allotted shares will see their funds refunded. Ensuring your bank details are accurate is pivotal to prevent any delays in receiving your refund.

Alongside the initiation of refunds, the same day also marks the credit of shares to investors’ Demat accounts. This is when, if you have been allotted shares, you will actually gain control of them digitally, ready for trading. With tight timelines, it’s vital to check and ensure that these shares are properly reflected in your account to avoid any chaos on the listing day.

The listing date is slated for December 26, bringing a close to the IPO process. Here’s when the shares will debut on the stock exchanges – the BSE and the NSE. For those looking to trade, it’s essential not to miss the cut-off time for UPI mandate confirmation—5 PM on the closing day, December 20.

Here’s a quick rundown of the critical dates:

  • IPO Open Date: December 18, 2023
  • IPO Close Date: December 20, 2023
  • Basis of Allotment: December 21, 2023
  • Refunds Initiation: December 22, 2023
  • Credit of Shares to Demat: December 22, 2023
  • Listing Date: December 26, 2023

Make sure you mark these dates on your calendar if you’re considering getting a piece of Suraj Estate Developers during their IPO. Timing is everything, and keeping these dates in mind will help you navigate the process with more ease.

Suraj Estate Developers IPO Lot Size

As an informed investor, I’m always keen on the specifics of an IPO, and lot size is one metric that catches my eye. Understanding the lot size is crucial as it determines the minimum number of shares one can bid for. In the case of Suraj Estate Developers IPO, the lot size is meticulously defined, catering to different categories of investors.

For Retail Investors, the IPO framework is designed to promote wide participation. If you’re considering a minimal investment approach, the Retail (Min) category allows for a single lot purchase of 41 shares, translating to an amount of ₹14,760. Should you decide to upscale your investment, the Retail (Max) category permits a maximum of 13 lots or 533 shares for ₹191,880.

Moving on to the High Net Worth Individuals (HNIs), the investment scales up substantially. The S-HNI (Min) lot begins with 14 lots, equivalent to 574 shares, costing ₹206,640. On the more ambitious side of the HNI spectrum, the B-HNI (Min) category allows 68 lots or 2,788 shares, which requires a commitment of ₹1,003,680.

Below is a summarized overview of the investment brackets:

ApplicationLotsSharesAmount (₹)
Retail (Min)14114,760
Retail (Max)13533191,880
S-HNI (Min)14574206,640
S-HNI (Max)672,747988,920
B-HNI (Min)682,7881,003,680

These data points reflect the scalability of investment choices and the inclusive nature of the IPO, affording both modest and aggressive investors the chance to partake. I’ve always advised my readers to align their investments with their financial goals and risk appetite. Hence, whether you’re dipping a toe or diving in deep, knowing your IPO lot size is pivotal to navigating the subscription process.

Suraj Estate Developers IPO Promoter Holding

When evaluating an IPO, it’s crucial to consider the promoter’s commitment to the company as reflected in their shareholding. For Suraj Estate Developers Limited, Mr. Rajan Meenathakonil Thomas is the driving force behind the company’s long-standing reputation in the real estate sector.

Prior to the IPO, Mr. Thomas maintained a 100% stake in the company, which signifies absolute control and confidence in the business’s strategic direction. It’s not uncommon for promoters to dilute their shareholding post-IPO to raise capital for expansion and other corporate activities. In Suraj Estate Developers’ case, their post-issue holding is slated to drop to 74.95%. This reduction in shareholding is planned to facilitate the company’s growth while still keeping a significant majority stake, demonstrating an ongoing belief in the company’s value and future prospects.

Share HoldingPercentage

This transition reflects a balance between raising fresh capital for the company and maintaining promoter influence over company affairs. The funds generated from the IPO will contribute to critical business functions such as debt reduction and land acquisition, which are pivotal for Suraj Estate Developers’ expansion plans in the South Central Mumbai region.

As an investor, it’s important to recognize that promoter shareholding can impact corporate governance and decision-making within the company. With a sizeable share retained by Mr. Thomas, stakeholders can expect continued commitment to the company’s ethos and strategic objectives. This information is paramount for deciding whether the Suraj Estate Developers IPO aligns with one’s investment strategy and risk appetite.

Suraj Estate Developers IPO Reservation

When examining the Suraj Estate Developers IPO, it’s essential to grasp the reservation structure, which determines how shares are allocated among different categories of investors. The table below breaks down the share distribution:

Investor CategoryShares Offered
QIBNot more than 50.00%
RetailNot less than 35.00%
NII (HNI)Not less than 15.00%

I’ll detail what this means for each investor category.

Qualified Institutional Buyers (QIBs) play a pivotal role in stabilizing the IPO. As per SEBI guidelines, they’re allocated no more than 50% of the net offer. This category includes heavyweight financial institutions like banks, mutual funds, and insurance companies, providing a strong foundation for the IPO’s success.

Retail Individual Investors (RIIs) are earmarked for not less than 35% of the offer. RIIs typically apply for shares amounting to less than Rs. 2 lakhs. Their participation is crucial, as it reflects the general public’s confidence in the IPO’s potential.

The last slice of the pie goes to Non-Institutional Investors (NIIs), also termed High Networth Individuals (HNIs), reserved for not less than 15%. NIIs often consist of corporate bodies or affluent individuals investing larger sums beyond the RII ceiling.

Understanding this reservation mix is key since it shapes the IPO’s dynamics and offers insights into the anticipated investor confidence across different market segments. It also indicates the diverse investor base Suraj Estate Developers is targeting, which ranges from large financial institutions to individual investors. Access to such a varied investor base reflects the company’s strategic efforts to garner robust, democratized support through the market.

By dissecting the reservation details above, investors can gauge the potential demand and stability an IPO might enjoy upon its launch. It’s a vital piece of the investment puzzle that assists in making informed decisions regarding IPO participation.

Suraj Estate Developers Limited Financial Information

When examining the financial health of Suraj Estate Developers Limited, it’s imperative to scrutinize the data. Let’s delve into the numbers that sketch the company’s fiscal landscape over the past few years. From the fiscal year ending March 31, 2021, to June 30, 2023, the company’s assets have steadily climbed from ₹792 crore to ₹994.73 crore, reflecting Significant Growth in the asset base.

The revenue trajectory tells a compelling story. As of 30 June 2023, the company’s revenue stands at ₹102.81 crore. While this represents a dip from the ₹307.89 crore reported on 31 March 2023, it’s noteworthy that the company has demonstrated a remarkable year-over-year growth, with revenue increasing from ₹244 crore in March 2021 to ₹273.91 crore in March 2022, culminating in a 12.41% Increase for the fiscal year ending March 31, 2023.

Period Ended30 Jun 202331 Mar 202331 Mar 202231 Mar 2021
Profit After Tax14.5332.0626.506.28
Net Worth86.1171.3939.1629.15
Reserves and Surplus70.2955.4823.3222.94
Total Borrowing598.50593.09638.16600.48
Amount in ₹ Crore

About the Suraj Estate Developers

Suraj Estate Developers Limited has established itself as a renowned real estate entity in Mumbai’s landscape. I’ve come to know their name through the impressive footprint they’ve left behind, with a Total Completed Projects Count of 42 and commendably covering more than 1 million square feet. Their strategic focus on the South Central region, particularly in Mahim, Dadar, Prabhadevi, and Parel, reflects their expertise in optimizing the sought-after locations of Mumbai.

What really catches the eye is their involvement in multiple projects concurrently. With 13 Ongoing Projects that promise an expansive developable area and a substantial saleable carpet area, they strongly signal growth and expansion. Their potential is even more evident with the 16 Upcoming Projects, which showcase a commitment to future development.

Completed Projects42
Total Covered Area (sq ft.)1,046,543.20
Ongoing Projects13
Developable Area (sq ft.)20,34,434.40
Saleable Carpet Area (sq ft.)6,09,928
Upcoming Projects16
Estimated Carpet Area (sq ft.)7,44,149

The company’s eye for luxury residential properties and its choice to cater to the value luxury market are strategic moves that tap into Mumbai’s flourishing aspirational class. Offering configurations from premium 1 BHK to spacious 4 BHKs, they’re not just building homes but creating value propositions for those seeking a blend of comfort and luxury.

Diving into Suraj Estate Developers’ IPO, it’s not just about the numbers—their confidence in inviting investors to be part of their growth narrative. The IPO, which opened on December 18, 2023, with an offer for equity shares aggregating up to Rs 400 crore, signifies a significant milestone.

Their financial fortitude, indicated by a 12% revenue growth, also demonstrates an upward trajectory in profitability. This growth not only spells success for Suraj Estate Developers but also for potential investors.

Suraj Estate Developers IPO Review

I always seek promising investment opportunities, and the Suraj Estate Developers IPO caught my attention. Scheduled for an opening between December 18, 2023, and December 20, 2023, the IPO seems geared to make a significant entry into the stock market. The listing date on the BSE/NSE is expected to be December 26, 2023, which could be an exciting opportunity for investors to tap into Mumbai’s vibrant real estate sector.

Suraj Estate Developers Ltd is renowned for its niche in South Central Mumbai, a region known for its rapid real estate growth. With the price band set at 340 to 360 per share and an issue size of 111 crore shares, this marks a substantial fresh issue amounting to Rs 40,000 crores. The allocation structure adheres to SEBI’s stipulated norms, with 50% reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and the remaining 35% for Retail Individual Investors.

Prospective investors should note that the minimum lot size is defined at 41 shares, which translates to an investment of Rs 14,760 for retail individuals. For Non-Institutional Investors, the minimum investment is significantly higher, with the smallest lot costing Rs 206,640. This bespoke allotment structure serves to enhance curated diversification within the investor base.

In terms of financials, Suraj Estate Developers showcased a robust financial trajectory with a 12.41% increase in revenue and a commendable 20.20% rise in PAT over the last financial year. Its consistent performance reflects the company’s strategic placement within the real estate industry and the burgeoning demand for luxury residential projects.

Furthermore, the fund utilization plan is clearly laid out, indicating a directed approach toward debt reduction, land acquisition, and general corporate purposes. This demonstration of financial prudence suggests that the company’s management is committed to fostering long-term stability and growth.

While no IPO investment is without risk, Suraj Estate Developers Ltd’s clear growth narrative and strong market presence make this IPO a compelling contender for diversifying one’s investment portfolio.

Suraj Estate Developers IPO Strengths and Weaknesses

There’s much to be impressed by when it comes to the strengths of Suraj Estate Developers’ IPO. First and foremost, the company’s diversified portfolio is a key highlight. Not only does it include residential and commercial developments, but it’s also expanded into creating boutique office spaces. This adaptability signals that the company is well-poised to meet the market’s changing demands. In addition, their redevelopment projects have benefited over 1,011 tenants, showcasing their commitment to building new projects and rejuvenating existing structures.

The financial health of Suraj Estate Developers is noteworthy as well. A stellar three-year average with a Return on Equity (ROE) of 53% and a Return on Capital Employed (ROCE) of 19% underlines their robust performance. Moreover, the company generated positive cash flows in two of the past three financial years, reaffirming its financial stability. The brand’s presence in South Central Mumbai, especially in the luxury segment, adds to its strength as a longstanding player known for its quality offerings.

However, every investment carries potential risks, and Suraj Estate Developers is no exception. The company’s borrowing levels are fairly high, with total borrowings at a substantial ₹598.50 crores. This could be an area of concern, especially if there are shifts in interest rates or economic downturns. Further, the firm’s reliance on the South Central Mumbai market could become a vulnerability, as they would be significantly affected should the region face economic challenges or property market fluctuations.

The fact that the company hasn’t paid dividends in recent years could also be a drawback, given that shareholders usually look for returns on their investments through dividends. Additionally, with certain ratios on the decline and lingering issues with inventory management, it’s evident that there are areas where the company needs to focus its improvement efforts.

By analyzing these observations, potential investors can understand the Suraj Estate Developers IPO more balanced. While there are compelling strengths, considering the weaknesses is crucial for a well-rounded investment strategy.

You may also like Muthoot Microfin IPO.

How to Apply for the Suraj Estate Developers IPO?

To apply for the Suraj Estate Developers IPO in Zerodha, you can follow these steps:

  1. Zerodha Account: You must have a Zerodha account to apply for the IPO.
  2. UPI Payment Setup: Ensure that you have set up UPI payment mode.
  3. Application Process: You can apply for the IPO online through Zerodha’s back office software “console.”
  4. Alternative Approach: Another method is to use Zerodha DP information and apply online via ASBA with your preferred net banking user ID.

For more details, visit Zerodha’s official website or refer to their back office software “console” for the application process.

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