Suraj Estate Developers to debut tomorrow. What GMP signals ahead of listing

The shares of Suraj Estate Developers will make their debut on the exchanges on Tuesday. Ahead of the listing, the company’s shares are trading with a premium of Rs 20 in the unlisted market.
If we consider the upper price band of Rs 360, the stock is expected to list at a mild premium of 5%.However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

Suraj Estate Developers IPO subscription

The IPO of Suraj Estate Developers was booked over 15.65 times at close. The retail portion of the issue was subscribed 9.3 times, and the non-institutional category’s subscription rate stood at 18.9 times.

The net proceeds to be raised from the fresh issue will be used towards repayment of debt of the company and its subsidiaries, acquisition of land or land development rights, and other general corporate purposes.

About Suraj Estate Developers

Suraj Estate has a longstanding presence of over 36 years in the real estate market in Mumbai. It has been developing residential and commercial properties throughout South Central Mumbai. According to a Anarock report, it is one of the top ten developers as per supply (in number of units).

Operating in both residential and commercial real estate, the firm caters to the “value luxury” and “luxury” segments, offering a diverse range of properties priced from Rs 1 crore to Rs 13 crore.

It has constructed and sold built-to-suit corporate headquarters to institutional clients, which includes Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).

The company also plans to foray into developing boutique office spaces on Tulsi Pipe Road, Mahim, to meet the growing demand for smaller independent offices in the commercial segment.

Suraj Estate Developers clocked a profit of Rs 32.06 crore in FY23, against Rs 26.50 crore in the previous year, a rise of 20.98%. Revenue during the year FY23 rose 12% to Rs 306, primarily due to increase in sales on account of new projects launched in the value luxury segment and additional floor transaction of commercial projects.

The company’s profit margin increased to 10.49% in fiscal 2023 from 9.72% in fiscal 2022.

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