Suraj Estate Developers IPO entails to raise Rs 400.00 crores. The issue is entirely a fresh issue of 1.11 crore shares. Suraj Estate Developers Limited is a real estate construction company and develops residential and commercial real estate in the South Central Mumbai region.
IPO opens
Dec 18, 2023
IPO Closes
Dec 20, 2023
IPO Size (Rs.)
₹400.00 Cr
IPO Size (shares)
11,111,111 shares
Breakup
Fresh issue only
Face Value:
₹ 5
IPO Price in Rs :
₹340 to ₹360
Minimum Lot
41 Shares
Listing At
NSE , BSE
QIB Quota
~50%
NII Quota
15%
Retail Quota
~35%
Lead Manager
Iti Capital Ltd , Anand Rathi Securities Limited
Registrar
Linkintime
About Suraj Estate Developers:
Suraj Estate Developers have been involved in the real estate business since 1986 and develop real estate across the residential and commercial sectors in South Central Mumbai region.
They have a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market where we have established our presence.
They are focused primarily on value luxury, luxury segments and commercial segment. We are now venturing into residential real estate development in Bandra sub-market.
Their focus area of operation is the South-Central region in Mumbai mainly consisting of Mahim, Matunga, Dadar, Prabhadevi and Parel,.
Company does not provide any construction services on its own and is 100% dependent on third party contractors for the construction services of its Projects.
Since incorporation, they have completed forty-two (42) projects with a developed area of more than 1,046,543.20 square feet in the South-Central Mumbai region.
In addition to the Completed Projects, they have thirteen (13) Ongoing Projects with a developable area of 2,034,434.40 square feet and saleable RERA carpet area 609,928 square feet and sixteen (16) Upcoming Projects with an estimated carpet area of 744,149 square feet.
Financials: Suraj Estate Developers
Particulars / Rs. crore
2023(03)
2023(12)
2022(12)
2021(12)
Revenue from Operations
102.41
305.74
272.72
239.99
Revenue Growth (%)
–
12.11%
13.64%
–
EBITDA as stated
46.73
151
131.73
86.63
EBITDA (%) as stated
45.64%
49.39%
48.30%
36.10%
Profit Before Tax
19.37
43.21
36.15
9.05
Net Profit
14.53
32.06
26.5
6.28
Net Profit (% )
14.19%
10.49%
9.72%
2.62%
Equity Share Capital
15.88
15.88
15.88
6.35
Net worth
86.11
71.39
39.16
29.15
EPS – Basic & Diluted (₹ )
4.58
10.1
8.35
1.98
RONW (%)
18.68%
58.18%
77.22%
23.62%
NAV (₹ )
27.12
22.49
12.33
45.9
ROCE (%)
6.78%
21.93%
19.42%
14.51%
Post issue Share Capital
22.18
FV
5.0
IPO price
360.0
EPS Fy23
7.2
PE Fy23
49.8
EPS Fy24 (annualized)
13.1
PE Fy24 (annualized)
27.5
Market cap in Lacs
1,597.0
Market cap / Sales
5.22
Anchor Book
Anchor Investors
% of Anchor Book
SBI General Insurance Company
12.50%
IEGFL Multi-opportunity Fund
11.67%
BNP Paribas Financial Markets
10.83%
LC Pharos Multi Strategy Fund
10.83%
Tata Housing Opportunities Fund
8.33%
ABSL India Services Equity Fund
8.33%
ITI Flexi Cap Fund
8.33%
BNP Financial Markets ODI
8.33%
Societe General ODI
8.33%
Quantum State Investment Fund
8.33%
Meru Investment Fund PCC
4.17%
Grand Total
100.00%
Suraj Estate Developers IPO: Salient Points
Promoter holding of 100%, will drop to 75% post the IPO.
Some notable project by them include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavan,Tranquil Bay-I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and Tranquil Bay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-I and Gloriosa apartments etc.
Details of the objects
Amount (in ₹ million)
Repayment/Prepayment of the aggregate outstanding borrowings of our Company and our Subsidiaries, Accord Estates Private Limited Iconic Property Developers Private Limited and Skyline Realty Private Limited
2,850.00
Acquisition of land or land development rights
350.00
Peers
Company / Rs. Million
Revenue
PAT
PAT %
PE
ROCE
Suraj Estate Developers
3057.4
320.6
10.49%
49.8(27.5)
21.93%
Oberoi Realty Limited
41,925.82
19,045.47
45.43
26.4
15.31
Sunteck Realty Limited
3,624.47
14.09
0.39
—
1.75
Keystone Realtors Limited
6856.6
795
11.59
51.5
3.71
Shriram Properties Limited
6,744.03
682.5
10.12
28.8
2.17
Mahindra Lifespace
6,066.10
1,028.30
16.95
—
3.03
D B Realty Limited
6982.396
-900.07
-12.89
89
-2.27
Hubtown Limited
3,190.90
262.8
8.24
41.5
3.3
They have established brand with a long standing presence in Value Luxury Segment and Luxury Segment in the residential real estate market of South Central Mumbai region;
They have diversified portfolio encompassing product offerings across various price points in value luxury and luxury segments;
They have expertise in tenant settlement in the redevelopment projects in residential sub-markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel;
Their expertise lies is in the redevelopment of tenanted properties under Regulation 33(7) of the Development Control and Promotion Regulations (“DCPR”) in the Mumbai region. Since most of the land parcels in the South Central Mumbai market are in the nature of redevelopment projects, and core competence lies in tenant settlement which is a key element for unlocking value on such land parcels. They identify cessed/ non- cessed properties with existing tenants, and tie up with the landlords of such tenanted properties by entering into a development agreement or on outright purchase basis through conveyance deed.
12 out of 13 ongoing projects and 13 out of 16 of upcoming projects are redevelopment projects.
They have completed forty-two (42) projects with a developed area of more than 1,046,543.20 square feet in the South-Central Mumbai region with 3-4 projects in 3 years period.
In addition to the Completed Projects, they have 13 Ongoing Projects with a developable area of 2,034,434.40 square feet and saleable RERA carpet area 609,928 square feet and sixteen (16) Upcoming Projects with an estimated carpet area of 744,149 square feet.
Company holds certain strategic land parcels in localities like Bandra (West) and Santacruz (East) for development.
Company believes that its brand reputation enables it to sell throughout the construction phase of projects and aims to sell over 80% of the saleable area of the project during the construction phase.
On flip side its its gross debt is quite high at around 600 crores as on 30.6.23, gross debt stood at Rs. 598 cr, with high average interest rate of 18% pa.
Post IPO the debt shall come down significantly.
New bookings by company in this financial year have not been very robust.
Suraj Estate Developers IPO is coming at PE of 50x (FY23) and 27x (FY24 annualized)
I may apply in Suraj Estate Developers IPO subject to availability of funds.
GMP as reported on social media has been around Rs. 70.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
