Suraj Estate IPO

Suraj Estate Limited

₹13,940 /41 sharesMinimum Investment

Suraj Estate IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹360.00₹340.00-₹20.00 (5.56%)

Suraj Estate IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
18 Dec ‘23 - 20 Dec ‘23₹13,94041₹340 - ₹360
Issue SizeIPO Doc
400.00Cr
RHP PDF

Subscription Status As on 20 Dec '23, 5:30 PM

  • Qualified Institutional Buyers
    24.31x
  • Non-Institutional Investor
    18.90x
  • Retail Individual Investor
    9.29x
  • Total
    15.64x

About Suraj Estate

Suraj Estate has been actively engaged in the real estate industry since 1986, developing properties in both the residential and commercial sectors within the South Central Mumbai region. Since its incorporation, Suraj Estate has completed 42 projects. Their primary focus lies on value luxury, luxury segments, and the commercial sector, with a recent expansion into residential real estate development in the Bandra sub-market. The company operates primarily in the South-Central region of Mumbai, encompassing Mahim, Matunga, Dadar, Prabhadevi, and Parel. Their expertise lies in the redevelopment of tenanted properties under Regulation 33 (7) of the Development Control and Promotion Regulations (DCPR) in the Mumbai region. Their offerings include the construction and development of 1 BHK and compact 2 BHK flats for buyers in premium locations, upscale 2 BHK, 3 BHK, and 4 BHK flats for ultra-high net worth and high net worth individuals in the South Central Mumbai region, and the construction and development of commercial offices on a built-to-suit model for select clientele and boutique offices.;
Parent Organisation
Suraj Estate Limited
Founded
1986
Managing Director
Mr. Rajan Meenathakonil Thomas

Strengths & Risks

  • Suraj Estate, a 37-year-old real estate company, has completed 42 projects, catering to both value luxury and luxury segments. The company has a significant presence in South Central Mumbai.
  • Suraj Estate has also ventured into the commercial sector, selling built-to-suit corporate headquarters to institutional clients and developing boutique office spaces on Tulsi Pipe Road, Mahim, to meet the demand for smaller independent offices.
  • Suraj Estate has completed around 3 to 4 projects on average every 3 years.
  • Suraj Estate caters to both the 'value luxury' and 'luxury' segments in the residential sector, with unit values ranging from Rs. 10 million to Rs. 130 million.
  • Suraj Estate has identified land reserves in Bandra (West) and Santacruz (East) for future development, with a total area of 10,359.77 square meters. The company plans to utilize the entire FSI potential, subject to marketability and regulatory clearances.
  • Suraj Estate's business hinges on the performance and conditions of real estate submarkets in South-Central Mumbai. As of October 31, 2023, they exclusively operate in this region, exposing them to risks from economic regulatory changes and natural disasters, which could adversely impact their business, operations, cash flows, and financial condition.
  • As of the same date, Suraj Estate has 216 unsold units in their ongoing projects. Failure to sell these inventories promptly could negatively affect their business, results, and financial condition.
  • On October 31, 2023, the company had 16 upcoming projects in early planning stages. These projects require approvals and renewals from the Brihanmumbai Municipal Corporation. Difficulties in meeting conditions or delays in approvals may necessitate rescheduling of ongoing and upcoming Projects, affecting operations adversely.
  • In 2021, Suraj Estate experienced negative cash flows in operating activities due to increased loans, trade receivables, and other assets. The business, being capital-intensive, requires significant expenditures for land acquisition and development.
  • As of June 30, 2023, they incurred expenditures of Rs.83.442 crore, Rs. 264.678 crore, Rs. 237.756 crore, and Rs. 234.952 crore in the three-month period and 2023, 2022, and 2021 respectively. Dependency on real estate financing poses a risk, and its availability may not be timely or on acceptable terms.
  • As of September 30, 2023, the company's unsecured loans stood at Rs. 77.435 crore, comprising 13.61% of the total loans. These unsecured loans are subject to recall by lenders at any time. Failure to collect loans and advances from related parties could materially impact the results of operations and cash flows.
  • Suraj Estate's indebtedness and conditions in financing agreements may adversely affect their ability to conduct business. The company also faces contingent liabilities that, if realized, could adversely impact business, financial condition, and results of operations.
  • Occupation certificates for 16 flats in four completed projects, including Ocean Star – II, Harmony, Jacob Apartments, and Gloriosa Apartments, have not been obtained. Compliance with Development Control and Promotion Regulations, 2034, may lead to additional costs.
  • Subsidiaries have incurred losses in the last three years, and potential future losses may adversely affect Suraj Estate's business, prospects, financial condition, cash flows, and results of operations.
  • The company relies entirely on third-party contractors for construction services. Any failure on their part could adversely impact business, results, and cash flows.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular340 - 360₹2 Lakh
High Networth Individual340 - 360₹2 - 5 Lakh
For Suraj Estate IPO, eligible investors can apply as Regular.
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 4.7.4
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK MAHINDRA |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  BANDHAN |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  IDBI |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ |  BAJAJ

ABOUT GROWW