Mumbai Real Estate Company Suraj Estate Developers Receives SEBI Approval For an IPO

Suraj Estate Developers is a Mumbai-based real estate company that is constructing homes in Mahim, Matunga, Dadar, Prabhadevi, and Parel.The Securities and Exchange Board of India (SEBI) has just granted Suraj Estate Developers clearance for its upcoming initial public offering (IPO) (IPO).

The business filed documents with SEBI in March for an IPO consisting of a new issuance of Rs 500 crore worth of shares with no offer for sale component.

For the planned sale of equity shares, the issue has a par value of Rs 5 per share. 

The offer is being made via the Book Building Process, with at least 75% of the offer available for allocation to Qualified Institutional Buyers, 15% available for allocation to non-institutional bidders, and 10% available for allocation to retail individual bidders.

According to a survey by a renowned real estate firm, Suraj Developers developed 14 residential projects between 2016 and 2021, 12 of which were redevelopment projects (86 percent). 

As a real estate developer in South Central Mumbai, Suraj Estate Developers has also created and sold corporate offices for institutional customers such as Saraswat Cooperative Bank (Prabhadevi) and Clearing Corporation of India (Dadar). 

In addition to general corporate objectives, Rs 315 crore will be used for the repayment or payback of borrowings, in whole or in part, for the firm and its subsidiaries. Rs 45 crore will be used for the purchase of land or land development rights.

Since its establishment in 1986 by Rajan Meenathakonil Thomas, Suraj Estate Developers has been constructing residential and commercial buildings in South Central Mumbai.

It has completed 42 projects with a total constructed area of about 1,046,543 square feet in South Central Mumbai. 

It also includes 21 forthcoming projects with a total carpet area of 928,400 square feet and nine continuing projects with a total developable area of 1,970,445 square feet and a saleable RERA carpet space of 442,616 square feet.