Suraj Estate Developers has decided to set the price band for its Rs 400-crore initial public offer at Rs 340-360 per share. The issue will open for subscription December 18.
Institutional investors can participate in the anchor book on December 15, while the public issue will be closing on December 20.
The IPO consists of only a fresh issue component by the company. The entire net issue proceeds, excluding the IPO expenses, will therefore go to the company.
The Mumbai-based real estate developer will spend Rs 285 crore for repaying debts which stands at Rs 285 crore. Its total outstanding consolidated debt on its books reached Rs 568.83 crore, as of September 2023.
Further, Rs 35 crore will be spend for acquisition of land or land development rights in Mumbai Metropolitan Region, while the remaining funds will be set aside for general corporate purposes.
Also read: India Shelter IPO: Anchor investors pick Rs 360-cr worth of shares, issue opens on December 13
Suraj Estate that develops residential and commercial properties in South Central Mumbai region has reserved half of its issue size for qualified institutional investors, 15 percent for high net-worth individuals, and the remaining 35 percent for retail investors.
On the lot size front, bids can be made for a minimum of 41 equity shares and in multiples of 41 shares thereafter. Retail investors can apply for a minimum 41 shares worth Rs 14,760 and the maximum they can invest Rs 1,91,880 for 533 shares in the IPO as they can't exceed their investment limit of Rs 2 lakh.
Since 1986, the Rajan Meenathakonil Thomas and family-led company has completed 42 projects with a developed area of more than 1.05 million square feet in the South-Central Mumbai region. In addition, it has 13 ongoing projects with a developable area of 2.03 million square feet and saleable carpet area 0.6 million square feet and 16 upcoming projects with an estimated carpet area of 0.7 million square feet.
The merchant bankers to the public issue are ITI Capital and Anand Rathi Advisors.
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