The fresh issue, with a face value of Rs 5 per equity share, will be made through the book-building process, wherein at least 75% of the offer will be available for allocation to Qualified Institutional Buyers (QIBs). Not more than 15% of the offer will be available for allocation to non-institutional bidders and not more than 10% of the offer will be available for allocation to retail individual bidders, the company said in a release.
The proceeds from its fresh issuance worth Rs 315 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and its subsidiary, Rs 45 crore for acquisition of land or land development rights besides general corporate purposes.
The company clocked a profit of Rs 6.28 crore in the financial year 2020-21 against Rs 1.52 crore in the previous year. Revenue during the year 2020-21 rose to Rs 239.99 crore from Rs 86.93 crore in the previous year, an increase of 176.08%, primarily due to a rise in sales on account of the increase in sale volume of its projects.
Profit for the seven-month period ended October 2021 stood at Rs 11.90 crore on revenue of Rs 109.62 crore.
The Mumbai-based developer is one of the market leaders in rehabilitation projects in the South-Central Mumbai sub-markets including Mahim, Matunga, Dadar, Prabhadevi, and Parel markets.
The company had launched 14 residential projects between 2016 and 2021, with 12 of them being redevelopment projects. It counts Clearing Corporation of India and Saraswat Cooperative Bank among institutional clients, for which it has constructed and sold built-to-suit corporate headquarters.
Founded in 1986 by Rajan Meenathakonil Thomas, Suraj Estate Developers has been developing residential and commercial properties throughout the South Central Mumbai region.
In the South-Central Mumbai region, it has completed 42 projects with a total developed area of over 1.04 million sq ft. It also has nine ongoing projects with a total developable area of nearly 2 million sq ft and a saleable RERA carpet area of 4.43 lakh sq ft, as well as 21 upcoming projects with a total carpet area of 9.28 lakh sq ft.
Centrum Capital and Anand Rathi Advisors are the book running lead managers to the issue.
