Founded in 1986, Suraj Estate Developers Limited is a notable player in the real estate construction sector, primarily focusing on residential and commercial property development in South Central Mumbai.
The company exclusively relies on external third-party contractors for construction services, not engaging in direct construction activities.
To date, Suraj Estate Developers Limited has successfully completed 42 projects, covering an impressive area of over 1.04 million square feet in the South-Central Mumbai region. Its residential offerings span the value luxury to luxury segments, with unit prices ranging from ₹10 million to ₹130 million.
With a history stretching back to 1986, Suraj Estate Developers has carved out a significant presence in the real estate sector, holding a 15.25% market share in unit supply in Mumbai's suburban regions like Mahim, Matunga, Dadar, Prabhadevi, and Parel over 2016-2021.
The company's current portfolio includes 13 ongoing projects with a developable area of approximately 2.03 million square feet and a saleable carpet area of around 6,09,928 square feet. Additionally, there are 16 upcoming projects anticipated to have an estimated carpet area of 7,44,149 square feet.
Among its notable projects are Suraj Eleganza-II, ICICI Apartments, CCIL Bhavan (Phase-I up to the 6th floor), Tranquil Bay-I, Elizabeth Apartment, Mon Desir, St. Anthony Apartments, Lumiere, Tranquil Bay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-I, Gloriosa Apartments, and others.
Working with esteemed architects like Sanjay Puri Architects and Vivek Bhole Architects Private Limited, the company continues to make significant strides in the real estate sector.
Industry Outlook
- India's real estate market is expected to grow from ₹12,000 crore (US$ 1.72 billion) in 2019 to ₹65,000 crore (US$ 9.30 billion) by 2040 and reach US$ 1 trillion by 2030, contributing 13% to the GDP by 2025.
- By 2047, the sector is projected to expand to US$ 5.8 trillion, accounting for 15.5% of India's GDP, up from 7.3%.
- In FY23, the residential property market in India saw a record high, with home sales valued at ₹3.47 lakh crore (US$ 42 billion), a 48% year-on-year increase, and a 36% rise in sales volume to 3,79,095 units.
Suraj Estate Developers Limited IPO Details
Suraj Estate Developers Limited IPO Date
The IPO of Suraj Estate Developers Limited is open for subscription from December 18, 2023 to December 20, 2023.
Suraj Estate Developers Limited IPO's Price Band
The exact price range is ₹340 to ₹360.
Suraj Estate Developers Limited IPO’s Lot Size
The minimum lot size is 41 shares.
Suraj Estate Developers Limited IPO’s Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Repayment of Existing Borrowings: Suraj Estate Developers intends to allocate ₹2,850 million from their IPO proceeds towards the repayment or prepayment of existing debts of the company and its subsidiaries, which include Accord Estates Private Limited, Iconic Property Developers Private Limited, and Skyline Realty Private Limited.
- Acquisition of land or land development rights:The company has earmarked ₹350 million for acquiring land or land development rights as part of its expansion and growth strategy.
- General Corporate Purposes: A portion of the funds raised will also be utilised for general corporate purposes, as required by the company's ongoing operations and future plans.
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Contact Details of Suraj Estate Developers Limited
Registered office: 301, 3rd Floor, Aman Chambers, Veer Savarkar Marg, Opp. Bengal Chemicals, Prabhadevi, Mumbai 400025, Maharashtra, India
Contact Person: Shivil Kapoor (Company Secretary and Compliance Officer)
Phone: +91 22 4015 4746, +91 22 401544764
E-mail: suraj@surajestate.com
Company Financials
| Particulars (in Rs. Crores) | Total Assets | FY21 | FY20 |
|---|---|---|---|
| Total Income | 3,078.90 | 2,739.07 | 2,439.98 |
| EBITDA Margin (%) | 49.39% | 48.30% | 36.10% |
| Profit After Tax (PAT) | 320.64 | 265.04 | 62.77 |
| PAT Margin (%) | 10.49% | 9.72% | 2.62% |
| Total Borrowings | 5,930.93 | 6,381.57 | 6,004.78 |
| Cash & Cash Equivalents | 121.05 | 76.86 | 68.17 |
| Debt to Equity Ratio(x) | 58.18% | 16.30 | 20.60 |
| Return on Equity (%) | 58.18% | 77.22% | 23.62% |
| Return on Capital Employed (RoCE) (%) | 21.93% | 19.42% | 14.51% |
| Earning Per Share (EPS) in absolute ₹ | 10.10 | 8.35 | 1.98 |
Know before investing
Strengths
5Renowned for its established brand, the company holds a significant position in both the Value Luxury and Luxury Segments within South-Central Mumbai's residential real estate market.
The company boasts a varied portfolio featuring a range of product offerings at different price points.
A robust pipeline of projects ensures clear visibility of cash flows in the near term.
The company employs creative and effective marketing and sales approaches.
The firm possesses considerable expertise in managing tenant resettlement in redevelopment projects.
Risks
5The company and its subsidiaries, including its directors, promoter, and group companies, are currently involved in various litigation proceedings.
Challenges have been faced in identifying and acquiring suitable land or development rights.
The company has taken on certain unsecured loans, amounting to ₹793.64 million as of December 31, 2021.
There are contingent liabilities present within the company, which hold potential future financial implications.
The company's operations are subject to risks stemming from economic, regulatory, and other changes, along with potential natural disasters in the South-Central Mumbai area, which also affect the overall performance of the real estate sector.
