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Updated December 26th, 2023 at 11:51 IST

Suraj Estate Developers shares list at 4.5% discount

The firm opened for trading at Rs 343.80 on the Bombay Stock Exchange (BSE) and saw a decline to Rs 335 by 10:05 am.

Business Desk
IPO
IPO | Image:Republic
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Suraj Estate Developers IPO: Suraj Estate Developers made a subdued market debut on December 26, opening 4.5 per cent lower than its initial public offering (IPO) price, despite a robust subscription rate of nearly 16 times during its IPO last week.

The firm opened for trading at Rs 343.80 on the Bombay Stock Exchange (BSE) and saw a decline to Rs 335 by 10:05 am, marking a 7 per cent reduction from its issue price of Rs 360 per share.

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The company's IPO, valued at Rs 400 crore, garnered substantial investor interest, with a subscription rate of 15.65 times. This interest translated to bids for 12.88 crore shares against an offering of 82.35 lakh shares.

Owned and operated by the Thomas family, Suraj Estate Developers reported a 21 per cent year-on-year increase in net profit, hitting Rs 32.06 crore for the fiscal year ending March 2023. Quarterly figures for the period ending June 2024 indicated a net profit of Rs 14.53 crore and revenue of Rs 102.41 crore.

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Proceeds from the IPO will primarily utilised for debt repayment, amounting to Rs 285 crore, and a further Rs 35 crore will be allocated for land acquisition or land development rights within the Mumbai Metropolitan Region. The residual funds will be channelled towards general corporate activities.

Specialising in residential real estate, Suraj Estate Developers concentrates on developing properties in South Central Mumbai. Notably, the firm outsources all construction activities, maintaining a 100 per cent reliance on third-party contractors for its project execution.

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Published December 26th, 2023 at 11:51 IST

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