Suraj Estate Developers IPO

About Company

Suraj Estate Developers, a developer of real estate, has submitted a draught red herring prospectus (DRHP) to SEBI in order to generate $500 million through an initial public offering. The money will be generated by issuing new equity shares. About 94.89 per cent of the corporation is owned by the promoter and promoter group, of which Rajan Meenathakonil Thomas, the promoter, owns 82.05 per cent. The book running leads managers to the problem, along with Centrum Capital and Anand Rathi Advisors.

Since 1986, Suraj Estate Developers has worked in the real estate industry, creating both residential and commercial properties in the South Central Mumbai area. For the period 2016 to 2021, the firm has a 15.25 per cent market share in terms of the number of units provided in the Mumbai suburbs of Mahim, Matunga, Dadar, Prabhadevi, and Parel. The residential portfolio of the firm is divided into the "value luxury" and "luxury" sectors, with prices ranging from Rs 1 crore to Rs 13 crore. We have developed and sold built-to-suit corporate offices to our institutional clients, Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited, as part of our commercial portfolio (Dadar). We want to go into creating boutique office spaces on Tulsi Pipe Road in Mahim to meet the growing need for smaller independent offices in the business sector. The firm locates buildings with current tenants that are cessed or non-cessed and partners with the landlords of those properties through a development agreement or an outright purchase through a conveyance deed. Additionally, it offers current renters and residents of redevelopment buildings free, high-quality housing. As a result, the bulk of projects is carried out on company-owned property or under the terms of development agreements with landowners. Sanjay Puri Architects and Vivek Bhole Architects Private Limited are only two of the renowned architects the business collaborates with.

Suraj Estate Developers Limited IPO Objectives:

• Repayment/Prepayment of the aggregate outstanding borrowings of the Company and the Subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited.
• Acquisition of land or land development rights; and
• General corporate purposes.
• In addition, they expect to achieve the benefits of listing our Equity Shares on the Stock Exchanges. 

Why should you invest in Suraj Estate Developers Limited:

• Despite the spiralling COVID-19 pressure across the country, the Indian residential sector made a significant comeback in Q3 2021 with absorption rebounding to 113% of the corresponding period in 2020. The Mumbai Metropolitan Region (“MMR”), Pune, Bengaluru, Hyderabad, the National Capital Region (“NCR”), Chennai and Kolkata (“Top Seven Indian Markets”) recorded absorption of approximately 0.15 million units in the first three quarters of 2021 - rising by 67% against the corresponding period in 2020. 
• New launches have jumped by 117% from 75,150 units in January to September period of 2020 to nearly 162,950 units in the same period in 2021. 
• The unsold inventory across the top 7 cities in India has remained stable on a quarterly basis (655,299 units) but witnessed an increase of 3% on a yearly basis because the new supply outpaced overall absorption numbers over the last 5 quarters ending September 2021.