Suraj Estate Developers IPO subscribed 15.65 times, retail portion booked 9.30 times on final day

Ahead of the IPO, anchor investors acquired shares worth nearly Rs 120 crore in Suraj Estate Developers

Suraj Estate Developers IPO was subscribed 15.65 times on December 20, the final day of bidding, with investors sending in bids for 12.88 crore shares against the offer size of 82.35 lakh.

Retail investors bought 9.30 times and high net-worth individuals (HNIs) picked 18.9 times their allotted quota of shares. Qualified institutional buyers (QIBs) had picked 24.31 times the reserved portion.

Suraj Estate Developers is looking to raise Rs 400 crore through the IPO, a fresh issue of 1.11 crore shares. The price band has been fixed at Rs 340-360 a share with a lot size of 41 shares.

Also read: Suraj Estate Developers IPO: 10 things to know before subscribing to Rs 400 crore issue

The real estate developer will use the fresh issue proceeds to repay debts of Rs 285 crore, while Rs 35 crore will be used to acquire land or land development rights in the Mumbai Metropolitan Region. The remaining money will be set aside for general corporate purposes, the company has said.

Ahead of the IPO, institutional investors acquired shares worth nearly Rs 120 crore in the Mumbai-based real estate company through the anchor book.

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 got allotments in the anchor book. BNP Paribas Financial Markets, Societe Generale-ODI, Quantum-State Investment Fund, and IEGFL-Multi Opportunity also participated in the anchor book.

Also Read: Suraj Estate IPO: Should you subscribe to Rs 400-crore issue?

Owned by Rajan Meenathakonil Thomas and family, the developer recorded a 21 percent on-year growth in net profit at Rs 32.06 crore in FY23 on a revenue of Rs 305.7. In the quarter ended June FY24, its net profit stood at Rs 14.53 crore on a revenue of Rs 102.41 crore.