New Delhi: Realty firm Suraj Estate Developers has filed a draft red herring prospectus (DRHP) with market regulator Sebi to launch its initial primary offering (IPO).

The Mumbai-based company is eyeing to raise Rs 500 crore via its primary offering, which will entirely consist of fresh issue of shares.

The net proceeds from the issue will be issued for prepayment/repayment of borrowings aggregating to Rs 315 crore, whereas Rs 45 crore will be utilized towards the acquisition of land or land development rights.

Suraj Estate Developers holds a 15.25 per cent share in terms of the number of units supplied in the suburban areas of Mumbai including Mahim, Matunga, Dadar, Prabhadevi and Parel region for the calendar year 2016-2021.

The company has a residential portfolio in the ‘value luxury’ and ‘luxury’ segments, ranging from Rs 1 crore to Rs 13 crore. The company is also active in the commercial real estate business.

The promoter and promoter group hold about 94.89 per cent stake in the company, of which Rajan Meenathakonil Thomas (promoter) holds 82.05 per cent stake.

For the financial year ended on March 31, 2021, the company reported a profit after tax (PAT) of Rs 6.28 crore, with a total income of Rs 239.99 crore.

The realty player reported a net profit of Rs 11.9 crore, with a total income of Rs 109.62 crore for the seven months ended October 31, 2021.

Seventy-five per cent of the IPO will be reserved for qualified institutional buyers (QIBs), whereas non-institutional bidders (NIIs) will get 15 per cent of the allocation. The remaining 10 per cent of equity shares are reserved for retail bidders.

The company has appointed Centrum Capital and Anand Rathi Advisors as BRLMs to the issue, whereas Link Intime India has been appointed as the registrar to the issue.


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