Suraj Estate Developers IPO Dates, Price Band, GMP, Lot Size Details and Review
Suraj Estate Developers, a Mumbai-based real estate company, is launching its IPO on December 18, 2023. The company specializes in redevelopment projects in the South-Central Mumbai region, catering to the value luxury and commercial segments.
The Suraj Estate Developers IPO aims to raise Rs 400 crore through a fresh issue of shares at a price band of Rs 340–360 per share. The issue will close on December 20, 2023, and the shares will be listed on BSE and NSE. I
In this article, we will look at the Suraj Estate Developers IPO Dates, Price Band, GMP, Lot Size Details and provide our review.
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Page Contents
Suraj Estate Developers IPO Overview
| IPO Dates | December 18, 2023 – December 20, 2023 |
| Issue Type | Book Built Issue IPO |
| Total Issue Size | ₹400.00 Crores |
| Fresh Issue | 11,111,111 shares (aggregating up to ₹400.00 Crores) |
| Price Band | ₹340 to ₹360 per share |
| Lot Size | 41 Shares |
| Listing At | BSE, NSE |
| Tentative Listing Date | December 26, 2023 |
| Suraj Estate Developers IPO Listing Price Prediction | ₹430 |
| Suraj Estate Developers IPO GMP | ₹70 |
Suraj Estate Developers IPO Dates
| IPO Open Date | Monday, December 18, 2023 |
| IPO Close Date | Wednesday, December 20, 2023 |
| Basis of Allotment | Thursday, December 21, 2023 |
| Initiation of Refunds | Friday, December 22, 2023 |
| Credit of Shares to Demat | Friday, December 22, 2023 |
| Listing Date | Tuesday, December 26, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 20, 2023 |
Suraj Estate Developers IPO Lot Size
| Investor Category | Application (Lots) | Shares (Minimum) | Amount (Minimum) |
|---|---|---|---|
| Retail (Min) | 1 | 41 | ₹14,760 |
| Retail (Max) | 13 | 533 | ₹191,880 |
| S-HNI (Min) | 14 | 574 | ₹206,640 |
| S-HNI (Max) | 67 | 2,747 | ₹988,920 |
| B-HNI (Min) | 68 | 2,788 | ₹1,003,680 |
Suraj Estate Developers IPO GMP
| GMP Date | GMP | Estimated Suraj Estate Developers IPO Listing Price |
|---|---|---|
| 18-12-2023 Open | ₹70 Todays Movement – GMP No Change | ₹430 (19.44%) |
| 17-12-2023 | ₹70 Todays Movement – GMP Up | ₹430 (19.44%) |
| 16-12-2023 | ₹66 Todays Movement – GMP Up | ₹426 (18.33%) |
| 15-12-2023 | ₹55 Todays Movement – GMP Down | ₹415 (15.28%) |
| 14-12-2023 | ₹65 Todays Movement – GMP Up | ₹425 (18.06%) |
| 13-12-2023 | ₹55 Todays Movement – GMP Up | ₹415 (15.28%) |
Suraj Estate Developers Company Profile
Suraj Estate Developers Limited, established in 1986, specializes in developing residential and commercial real estate in South Central Mumbai. The company has completed 42 projects and currently has 13 ongoing and 16 upcoming projects. Notably, Suraj Estate Developers does not provide in-house construction services and relies entirely on third-party contractors.
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Suraj Estate Developers Financial Highlights
- Revenue Growth: The company’s revenue increased by 12.41% between the financial years ending March 31, 2022, and March 31, 2023.
- Profit After Tax (PAT): PAT rose by 20.98% in the same period.
- Net Worth: As of June 30, 2023, the net worth stood at ₹86.11 Crores.
- Total Borrowing: ₹598.50 Crores as of June 30, 2023.
Suraj Estate Developers Market Position and Projects
Suraj Estate Developers has developed over 10 lakh square feet of land in Mumbai, focusing on the “Value Luxury” and “Luxury” segments in residential real estate. The company has also built corporate headquarters for institutional clients like Saraswat Cooperative Bank Limited and the National Stock Exchange of India.
Suraj Estate Developers IPO Objectives
The net proceeds from the IPO will be utilized for:
- Repayment/Prepayment of outstanding borrowings of the company and its subsidiaries.
- Acquisition of land or land development rights.
- General corporate purposes.
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Key Performance Indicators
- P/E Ratio: 35.64
- ROE: 58.18%
- ROCE: 21.93%
- Debt/Equity Ratio: 8.31
- EPS: ₹10.1
Pros and Cons of Suraj Estate Developers IPO
Pros:
- The company has a long-standing presence and expertise in the redevelopment segment of the real estate market, which has high entry barriers and growth potential.
- The company has a strong track record of delivering quality projects on time and has established a reputation for its work style and customer satisfaction.
- The company has a diversified project portfolio across segments and locations, and is expanding into new markets and segments, such as Bandra and affordable housing.
- The company has improved its profitability and equity over the years and has a positive cash flow from operations.
- The company has a robust land bank and pipeline of projects, which provide visibility and scalability for future growth.
Cons:
- The company’s revenue growth has been modest and lower than some of its peers in the industry.
- The company’s valuation is higher than the average of its listed peers, which may limit the upside potential for investors.
- The company’s ratios, such as return on net worth, net profit margin, and debt-to-equity, have declined over the years, indicating a deterioration in efficiency and performance.
- The company’s inventory management is inefficient, as it has a high inventory turnover ratio and a high inventory holding period, which may affect its liquidity and cash flow.
- The company faces risks and uncertainties associated with the real estate sector, such as regulatory changes, market fluctuations, project delays, customer defaults, environmental issues, legal disputes, etc.
Suraj Estate Developers IPO Analysis and Review
Suraj Estate Developers Limited has shown steady growth and has a strong presence in the South-Central Mumbai region. The company’s focus on prestigious projects and redevelopment initiatives positions it well in the real estate sector.
However, investors should consider the competitive landscape, market risks, and the company’s reliance on third-party contractors before investing.
Final Thoughts Suraj Estate Developers IPO
The Suraj Estate Developers IPO presents an opportunity for investors to participate in the growth story of a well-established real estate company in Mumbai. With its solid track record and strategic focus on key segments, the company is poised for future growth.
However, as with any investment, it is crucial to conduct thorough research and consider individual risk appetites before participating in the IPO.
