Institutional investors bought nearly Rs 120 crore worth of shares in Suraj Estate Developers, the Mumbai-based realty company, via the anchor book launched for a day on December 15.
The fundraising took place just a day before the public issue opening next week. The subscription for the offer will start on December 18 and will continue till December 20.
The real estate developer in its filing to exchanges said it has finalised the allocation of 33,33,333 equity shares to anchor investors at Rs 360 per share, the upper price band.
A total of 10 institutional investors invested in the company via anchor book including SBI General Insurance Company, Tata Housing Opportunities Fund, Aditya Birla Sun Life AMC, LC Pharos Multi-Strategy Fund VCC, ITI Flexi Cap Fund and Meru Investment Fund PCC-Cell 1.
Also read: Motisons Jewellers raises Rs 36.3 crore via anchor book, IPO opening on Dec 18
BNP Paribas Financial Markets, Societe Generale-ODI, Quantum-State Investment Fund, and IEGFL-Multi Opportunity also participated in the anchor book.
"Out of the total allocation of 33,33,333 equity shares, 5,55,632 equity shares were allocated to 2 domestic mutual funds through 2 schemes," Suraj Estate said.
The company is planning to raise Rs 400 crore via an initial public offering. The price band for the offer has been set at Rs 340-360 per share.
The IPO comprises only a fresh issue portion and there is no offer-for-sale component.
Also read: Suraj Estate Developers IPO: 10 things to know before subscribing to Rs 400 crore issue
Of the net fresh issue proceeds, i.e. excluding IPO expenses, Rs 285 crore will be used for repaying debts, while its consolidated debt as of September 2023 was at Rs 568.83 crore. Further, the company will spend Rs 35 crore for the acquisition of land or land development rights in the Mumbai Metropolitan Region, and keep the remaining amount for general corporate purposes.
Since 1986, Rajan Meenathakonil Thomas and the family-led company Suraj Estate have developed residential and commercial properties in the South-Central Mumbai region. So far, it has completed 42 projects with a developed area of more than 1.05 million square feet in the South-Central Mumbai region.
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