The company generated a profit of Rs 32.06 crore in FY23.
As per the IPO documents submitted on Monday, the company plans to raise Rs 400 crore by issuing new shares, and there won’t be any offer for sale (OFS).
Real estate firm Suraj Estate Developers has submitted fresh preliminary documents to the Securities and Exchange Board of India (SEBI) with the intent to raise Rs 400 crore via an initial public offering (IPO). Earlier, in March 2020, the Mumbai-based real estate company filed its draft IPO papers. As per the IPO documents submitted on Monday, the company plans to raise Rs 400 crore by issuing new shares, and there won’t be any offer for sale (OFS). The funds raised through the IPO, amounting to Rs 285 crore, will be optimised to repay the debts incurred by the company and its subsidiaries.
A portion of Rs 35 crore will be used for land acquisition, while the rest of the amount will support the regular operations of the company. In the financial year 2022-23, Suraj Estate Developers recorded a profit of Rs 32 crore, and in the preceding year 2021-22, the company’s profit stood at Rs 26.50 crore.
ITI Capital Ltd and Anand Rathi Advisors have been entrusted with the responsibility of acting as the Book Running Lead Manager for the IPO. SEBI, the capital market regulator, has approved TVS Supply Chain Solutions, a subsidiary of TVS Group for its IPO. As per the draft proposal, the IPO will issue fresh equity shares worth up to Rs 750 crore. Additionally, the IPO will include an offer for sale (OFS) of over two crore equity shares by the company’s promoters and existing shareholders.
Omega TC Holdings Pte Ltd, Tata Capital Financial Services Ltd, Mahogany Singapore Company Pte Ltd, and TVS Motor Company Ltd are among the sellers participating in the offer for sale (OFS). The company had filed IPO documents in April; and subsequently, the SEBI granted its approval on July 18.
Suraj Estate has established a strong foothold in the Mumbai real estate market. Over the years, the firm remained firm in developing both residential and commercial properties in various parts of South Central Mumbai.
Suraj Estate Developers generated a profit of Rs 32.06 crore in FY23, marking a 20.98% rise from the previous year’s Rs 26.50 crore. The revenue also saw a 12% increase to Rs 306, driven by higher sales from newly-launched projects in the value luxury segment and additional floor transactions in commercial projects. The company’s profit margin improved to 10.49% in fiscal 2023 compared to 9.72% in fiscal 2022.
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