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Suraj Estate IPO
Suraj Estate Limited
₹13,940 /41 sharesMinimum investment
IPO details
Minimum investment
₹13,940
Price range
₹340 - ₹360
Lot size
41
Issue size
400 Cr
Face value
5
IPO document
Subscription rate
Qualified Institutional Buyers24.31x
Non-Institutional Investor18.90x
Retail Individual Investor9.29x
Total15.64x
Schedule
18 Dec 2023
IPO open date
20 Dec 2023
IPO close date
21 Dec 2023
Allotment date
21 Dec 2023
Funds unblock or debit
26 Dec 2023
Tentative listing date
About
Founded in
1986
MD/CEO
Mr. Rajan Meenathakonil Thomas
Parent organisation
Suraj Estate Limited
Suraj Estate Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
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.
Application details
For Suraj Estate IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹340 - ₹360 | Upto ₹2 Lakhs | 41 |
| High Networth Individual | ₹340 - ₹360 | ₹2 - ₹5 Lakhs | 41 |