Suraj Estate IPO Details


Suraj Estate IPO Details

Parent Organisation – Suraj Estate Limited

Founded –

1986

Managing Director – Mr. Rajan Meenathakonil Thomas

IPO Details

Bidding  Dates         Min. Investment       Lot size  
18 Dec – 23 Dec ‘23          13,940/- INR                          41   
Price Range                  Issue Size                  IPO Doc
340 – 360                         400.00CrRHP PDF

About

Suraj Estate has been actively involved in the real estate industry since 1986, since then Suraj Estate has been developing properties in the South Central Mumbai region in both residential and commercial sectors.

Suraj Estate has successfully completed 42 projects since its incorporation.

They have a primary focus on luxury value, luxury segments and the commercial sector, with recent expansion into residential real estate development in the Bandra submarket.

The company is mainly located in the south central region of Mumbai in Mahim, Matunga, Dadar, Prabhadevi and Parel.

Their expertise lies in redevelopment of rented properties under Regulation 33(7) of Development Control and Promotion Regulations (DCPR) in Mumbai region.

Their offerings include construction and development of 1 bhk and compact 2 Bhk flats for buyers in premium locations.

Upscale 2 bhk, 3bhk and 4bhk flats and construction for ultra high net worth and high net worth individuals in South Central Mumbai.

And the development of commercial offices built on a model suited to select clients and boutique offices.

Strengths

+ Suraj Estate is a 37-year-old real estate company that has    completed 42 projects for both the value luxury and luxury segments.

+ The company has a substantial presence in South Central Mumbai.

+ Suraj Estate and has also started selling commercial space built to suit corporate headquarters to institutional clients.

+ It is also developing boutique office fronts at Tulsi Pipe Road Mahim to cater to the demand for small independent offices.

+ On an average Suraj Estate has completes 3 to 4 projects in every 3 years.

+ Suraj Estate caters to the luxury and luxury segments of the residential sector with the unit values ranging from Rs. 10 million to Rs.130 million.

+ For future development Suraj Estate has identified land reserves in Bandra (West) and Santacruz (East) with a total area of 10,359.77 square meters.

+ The company plans to utilize the entire FSI capacity subject to market capacity and regulatory clearances.

Risks

– Suraj Estate’s business depends on the performance and conditions of real estate submarkets in South Central Mumbai.

– As of October 31, 2023 they exclusively operate in this region and are exposed to risks from financial regulatory changes and natural disasters that could adversely affect their business operations, cash flows and financial conditions.

– As on the same date Suraj Estate has 216 unsold units in their ongoing projects. Failure to sell these inventories promptly could adversely affect their business results and financial condition.

– As on October 31 2023 the company has 16 upcoming projects in pre-planning stage.

– These projects require permissions and clearances from the Brihan mumbai Municipal Corporation.

– Difficulties in meeting conditions or delays in approvals may necessitate rescheduling of ongoing and upcoming projects that adversely affect operations.

– In 2021, Suraj Estate faced negative cash flows from operating activities due to increased loans, trade receivables and other assets.

– The business is capital – intensive, requiring significant costs for land acquisition and development.

– By June 30, 2023, they will have Rs. 83.442 crores, Rs. 264.678 crores, Rs.237.756 crores, and Rs. 234.952 crores in three months period and in 2023, 2022 and 2021 respectively.

– Dependency on real estate financing involves risk and its availability may not be timely or on acceptable terms.

– As on September 30, 2023, the companies’ unsecured debt stood at Rs. 77.435 crores, 13.61% of total loans.

– Lenders can recall these unsecured loans at any time. Failure to collect loans and advances from related parties could materially affect the results of operations and cash flows.

– The terms of Suraj Estates’ indebtedness and financing agreements may adversely affect its ability to operate the business.

– The Company may also face contingent liabilities that, if realized, could adversely affect its business, financial condition and results of operations.

– Occupancy certificates have not been obtained for 16 flats in four completed projects including Ocean Star, Harmony, Jacob apartments and Gloriosa Apartments.

– Compliance with Development Control and Promotion Regulations, 2034, may result in additional costs.

– In the past 3 years subsidiaries have incurred losses and also the future losses may adversely affect Suraj Estates’ business, -prospects, financial condition, cash flows and results of operations.

– For construction services the Company relies entirely on third party contractors. If any failure on their part it could adversely affect the business, results and cash flows.

Subscription Status – As on December 2023

Qualified institutional buyers             0.12x
Non Institutional Investors                 1.23x
Retail individual investors                  0.28x
Total  0.71x
Suraj Estate IPO Details

Suraj Estate IPO Details

Suraj Estate IPO Details

Application Details

Apply as           Price Band         Apply upto
Regular340 – 360                  2 Lakh
High Net worth     340 – 360                  2 – 5 Lakh
Individual

For applying Suraj Estate IPO, eligible investors can apply as regular.


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