Suraj Estate Developers Limited’s initial public offering (IPO) will open for subscription on December 18. The Rs 400 crore public issue is entirely a fresh issue of 1.11 crore shares.
About Suraj Estate Developers IPO:
The company has been actively engaged in the real estate industry since 1986, specializing in the development of properties in both residential and commercial sectors. It is gearing up to launch its Initial Public Offering (IPO) for equity shares, each having a face value of Rs 5. The IPO price range is set between Rs 340 and Rs 360 per equity share, resulting in a total issue size of Rs 400 crore at the upper price band.
The IPO is scheduled to commence on December 18, 2023, and will conclude on December 20, 2023. The market lot size for the IPO is 41 shares, with the option to apply for multiples of this lot. Individual retail investors have the opportunity to apply for a maximum of 13 lots, equivalent to 533 shares or a total investment of Rs 1,91,880 assuming the upper price band.
IPO Details:
- IPO Opening Date: December 18, 2023
- IPO Closing Date: December 20, 2023
- Issue Type: Book Built Issue IPO
- Face Value: Rs 5 per equity share
- IPO Price: Rs 340 to Rs 360 per equity share
- Min Order Quantity: 41 shares
- Listing: BSE, NSE
- Issue Size: 11,111,111 shares of FV Rs 5*
- Fresh Issue: 11,111,111 shares of FV Rs 5*
- Fresh Issue: 11,111,111 shares of FV Rs 5*
- QIB Shares Offered: 50% of the Offer
- Retail Shares Offered: 35% of the Offer
- NII (HNI) Shares Offered: 15% of the Offer
Promoter Holding:
Rajan Meenathakonil Thomas is the promoter of the company. The promoter and promoter group currently hold a pre-issue shareholding stake of 100 per cent in the company.
Company Details:
The company has been actively engaged in the real estate industry since 1986, specializing in the development of properties in both residential and commercial sectors within the south central Mumbai region. Its residential portfolio includes properties in the Mahim, Dadar, Prabhadevi, and Parel markets, which are sub-markets of the south-central Mumbai micro market. The company has a primary focus on value luxury, luxury segments, and the commercial sector. Currently, it is expanding its residential real estate development efforts to the Bandra sub-market.
The company does not independently offer construction services and relies entirely on third-party contractors to handle the construction aspects of its projects. The company specializes in the redevelopment of tenanted properties in the Mumbai region. Given that a significant portion of land parcels in the south central Mumbai market involves redevelopment projects, the company’s primary expertise lies in effectively managing tenant settlements. This capability is a crucial element for realizing and maximizing the value of such land parcels.
Since its inception, the company has completed 42 projects, encompassing a total developed area exceeding 1,046,543.20 square feet in the south-central Mumbai region. In addition to these completed projects, there are currently 13 ongoing projects, with a developable area totaling 20,34,434.40 square feet. Over the course of its 37-year existence, the company has maintained a consistent project delivery pace, averaging 3 to 4 projects every 3 years. The company possesses specific land parcels located in Bandra (West) and Santacruz (East) earmarked for prospective development. As of October 31, 2023, it holds Land Reserves spanning 10,359.77 square meters, with plans for future development on these parcels.
Financials:
- Rs (in crore): FY21 FY22 FY23 Jun-23
- Revenue: 240 273 306 102
- Profit before tax (PBT): 9 36 43 19
- Net Profit: 6 27 32 15
Valuation and Outlook:
The issue is priced with a P/BV ratio of 13.27 times, calculated using its Net Asset Value (NAV) of Rs 27.12 as of June 30, 2023. At the upper price cap, it is priced at a P/BV ratio of 3.29, considering its post-IPO NAV of Rs 109.58 per share.
- Company Name: P/E P/B RoE (%)
- Suraj Estate Developers Ltd: 20 3.29 58
- Listed Peers
- Oberoi Realty Ltd: 27 4.18 17
- Keystone Realtors Ltd: 51 3.95 6.13
- Shriram Properties Ltd: 27 1.64 5.87
- Mahindra Lifespace Developers Ltd: 77 4.77 5.73
NOTE: We are Not Provided Any Buy-Sell Recommendation, it’s a Educational Purpose.