Suraj Estate Developers Files IPO With SEBI in Order to Raise INR 500 Crore

Suraj Estate Developers Ltd has filed preliminary documents with SEBI seeking to raise Rs 500 crore via an initial public offering (IPO).

The money would be generated via the issuing of new equity shares, according to the draught red herring prospectus (DRHP) submitted with the Securities and Exchange Board of India on Monday.

The money would be generated via the issuing of new equity shares, according to the draught red herring prospectus (DRHP) submitted with the Securities and Exchange Board of India on Monday.

A total of Rs 315 crore would be utilised to repay the company's and its subsidiaries' borrowings — Accord Estates, Iconic Property Developers, and Skyline Realty.

Around Rs 45 crore would be spent on property purchase or land development rights, with the remainder going to general business purposes.

Suraj Estate Developers has been developing real estate in the residential and commercial areas of South Central Mumbai since 1986. At the moment, the promoter and promoter group own around 95% of the firm. Centrum Capital and Anand Rathi Advisors are the issue's principal bookrunners.

The company's shares will be listed on the BSE and NSE.

Suraj Estate Developers has been constructing residential and commercial properties in the South Central Mumbai neighbourhood for more than a decade. The realtor has developed a strong brand and a good track record in the real estate sector by focusing on modern architecture, great project execution skills, and high-quality construction.


For the calendar years 2016 to 2021, the company ranks among the top two developers in terms of supply with a 15.25 percent market share and third in terms of absorption with a 13.50 percent market share in the residential submarkets of Mahim, Matunga, Dadar, Prabhadevi, and Parel in South Central Mumbai.

It has completed 42 projects totaling over 1,046,543 square feet in the South Central Mumbai region. Additionally, it has nine active projects totaling 1,970,445 square feet of developable space and 442,616 square feet of saleable RERA carpet space, as well as 21 planned projects totaling 928,400 square feet of carpet space. 
It is available throughout a range of price ranges in the 'value luxury' and 'luxury' categories, with unit values ranging from Rs 10 million to Rs 130 million.


The firm is developing land parcels in Bandra (West) and Santacruz (East). As of December 31, 2021, it has Land Reserves of 10,359.77 square metres, which it intends to expand in the next years by using the full FSI capacity of more than index 2.0, subject to marketability and regulatory approvals.

Suraj Estate Developers earned Rs 6.28 crore in profit for the fiscal year FY21, up from Rs 1.52 crore the previous year. Revenue climbed dramatically to Rs 239.99 crore in FY21 from Rs 86.93 crore the previous year, a 176.08 percent rise, principally owing to increasing sales volume of two projects, Palette (Dadar) and Ocean Star (Prabhadevi), and the lowering of stamp duty from 5% to 2%. Profitability was Rs 11.90 crore for the seven-month period ending October 2021 on sales of Rs 109.62 crore.