Suraj Estate Developers Limited’s Initial Public Offering to open on Monday, December 18, 2023, sets price band at ₹ 340 to ₹ 360 per Equity Share

Mumbai, December 14, 2023:  Mumbai-based realtor Suraj Estate Developers Limited has developed real estate across the residential and commercial sectors in South Central Mumbai region, and has residential portfolio located in the markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel,has fixed the price band at ₹340to ₹360per Equity Share for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, December 18, 2023, for subscription and close on Wednesday, December 20, 2023. Investors can bid for a minimum of 41 Equity Shares and in multiples of 41 Equity Shares thereafter.

The Public Issue of face value of ₹5 per Equity Shareis entirely a fresh issuance of Equity Shares worth Rs 4000 million with no Offer for Sale (OFS) component.

Founded in 1986 by Rajan Meenathakonil Thomas, Suraj Estate Developers focuses primarily on value luxury, luxury segments and commercialsegmentin South Central Mumbai region and now venturing into residential real estate development in Bandra sub-market. We specialise in the redevelopment of tenanted properties.

With alongstanding presence of over thirty-six years in the real estate market, it has completed forty-two (42) projects with a developed area of more than1,046,543.20 square feet in the South-Central Mumbai region. In addition to the Completed Projects, it has thirteen (13) Ongoing Projects with a developable area of 20,34,434.40 square feet and saleable carpet area6,09,928 square feet and sixteen (16) Upcoming Projects with an estimated carpet area of 7,44,149 square feet.

The Company caters to the discerning clientele across the “value luxury” and “luxury” segments, offering a diverse range of properties priced from ₹10.00 millionto ₹130.00 million. It has constructed and sold built-to-suit corporate headquarters to institutional clients, which includes Saraswat Co-operative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).To cater to the increasing need for independent office buildings in the commercial segment, it is currently proposing a 16 storey commercial building situated in Tulsi Pipe Road, Mahim.

Its customer centric business model focuses on addressing customer requirements in various locations, ticket sizes and configurations.

Positioned for future growth and expansion, the company holds certain strategic land parcels in Bandra (West) and Santacruz (East) for development. As of October31, 2023, it possesses Land Reserves of 10,359.77 square meters, intending to capitalize on the entire FSI potential of more than index 2.0, subject to marketability and receipt of regulatory clearances. They have land parcels spanning 9,631.35 square meters in Bandra (West), Mumbai, Maharashtra, and 728.42 square meters in Santacruz (East), Mumbai, Maharashtra, showcasing its commitment to strategic real estate investments and future projects.

During the three months’ period ended on June 30, 2023 and Fiscal 2023, 2022 and 2021, the consolidatedEBITDA was Rs 467.32 million, Rs 1,510.03 million, Rs 1,317.33 million andRs 866.29 million respectively, whereas consolidated EBITDA margin during the three months’ period ended on June 30, 2023 andFiscal 2023, 2022 and 2021 was 45.64%, 49.39%, 48.30%and 36.10% respectively.

As on October 31, 2023, it has redeveloped houses for more than 1,011 tenants in 42 Completed Projects, freeof-cost under regulation 33(7) of the Development Control and Promotion Regulation, 2034 (“DCP Regulations”).

The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.

ITI Capital Limited, and Anand Rathi Advisors Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

LISTING: The Equity Shares offered through the RHPare proposed to be listed on the Stock Exchanges. Our Company has received ‘in-principle’ approvals from BSE and NSE for the listing of the Equity Shares pursuant to letters both dated Septembers 22, 2023. For the purposes of the Issue, the Designated Stock Exchange shall be National Stock Exchange of India Limited (“NSE”). A copy of the RHP and the Prospectus shall be filed with the RoC in accordance with Sections 26(4) and 32 of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of the RHP until the Bid/Issue Closing Date, see “Material Contracts and Documents for Inspection” beginning on page 520 of the RHP.

DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA(“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Issue or the specified securities stated in the Offer Document. The investors are advised to refer to page 440 of the RHPfor the full text of the disclaimer clause of SEBI.

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 444 of the RHP for the full text of the disclaimer clause of BSE.

DISCLAIMER CLAUSE OF NSE (the Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 445 of the RHPfor the full text of the disclaimer clause of NSE.

SURAJ ESTATE DEVELOPERS LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a draft red herring prospectus dated July 24, 2023 with SEBI (the “DRHP”) and a red herring prospectus dated December 6, 2023 with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLMs i.e., ITI Capital Limited at www.iticapital.in and Anand Rathi Advisors Limited at www.anandrathiib.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.surajestate.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” beginning on page 33 of the RHP.

Potential investors should not rely on the DRHPfor making any investment decision but can only rely on the information included in the Red Herring Prospectus. The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions’ as defined in, and in reliance on, Regulation S under the U.S. Securities Act and the applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.

Corporate Comm India (CCI Newswire)