Suraj Developers IPO: 16 upcoming projects with 7.46 lakh sqft to come up over 5-6 years

Mumbai real estate update: The company is open to opportunities that have a good margin but as such has no intention to enter warehousing, logistics or any other segments. “We have enough on our plate in the residential and commercial segment, where we plan to remain focused,” Rahul Thomas, Director of Suraj Developers told Moneycontrol.

Suraj Estate Developers, which is gearing up for an Initial Public Offering (IPO), plans to construct 7.44 lakh sqft across 16 upcoming projects in the Mumbai real estate market. The company plans to continue its focus on the residential and commercial real estate segment. The 16 projects will come up in the next five to six years.

In addition, Suraj Estate Developers wants to focus on projects involving the redevelopment of old buildings and society redevelopment, Rahul Thomas, a Director with the company, told Moneycontrol.

The company has decided to raise Rs 400 crore through an IPO, at Rs 340-360 per share. The issue will open for subscription on December 18.

The company has said it will use Rs 285 crore of the proceeds to repay debts, Rs 35 crore on the acquisition of land or land development rights in the MMR, and the rest for general corporate purposes.

Company plans

Related stories

Mehul R Thakkar

Special Correspondent|Moneycontrol

• 
  New players have entered Mumbai real estate market and we welcome their presence: Abhishek Lodha
• 
  Mumbai real estate market records 9% rise in property registrations this month
• 
  MahaRERA tells developers to declare parking space details to homebuyers

Suraj Estate Developers Limited develops residential and commercial properties in the South Central Mumbai region. It plans to focus on the Mumbai real estate market for the next 4 to 5 years.

The company has been in the business of real estate since 1986 and 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 saleable carpet area of 6.09 lakh sqft and 16 upcoming projects of 7.44 lakh sqft.

Ticket price

In the upcoming pipeline of 7.44 lakh sqft, the company plans to come up with residential and commercial projects. In the residential segment, Suraj Estate Developers plans to develop houses priced in the range of Rs 1 crore to Rs 13 crore.

Also read: Suraj Estate Developers to launch Rs 400-cr IPO on Dec 18, sets price band at Rs 340-360

"In the 16 upcoming projects, the average per sqft carpet price will be anywhere between Rs 40,000 per sqft to Rs 65,000 per sqft. For the next three to five years, we plan to remain focused on Mumbai, in areas around Bandra, Mahim, and Dadar. We will explore other localities of MMR in the long term," Thomas added.

WATCH: Mumbai real-estate market crosses 1-Lakh mark | Why are property registrations high?

The company is open to opportunities that have a good margin but as such has no intention to enter warehousing, logistics or any other segments. “We have enough on our plate in the residential and commercial segment, where we plan to remain focused,” said Thomas.