Suraj Estate Developers Limited IPO

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  1. Business Scope:
    • The company is involved in real estate development across the residential and commercial sectors in South Central Mumbai.
    • Residential portfolio spans Mahim, Dadar, Prabhadevi, and Parel, with a new venture in the Bandra sub-market.
    • Focus areas include value luxury, luxury segments, and commercial development.
  2. Geographical Focus:
    • Primary operational area is the South-Central region of Mumbai, encompassing Mahim, Matunga, Dadar, Prabhadevi, and Parel.
  3. Expertise in Redevelopment:
    • Specializes in the redevelopment of tenanted properties under Regulation 33(7) of the Development Control and Promotion Regulations in Mumbai.
    • Core competence lies in tenant settlement, a crucial element for unlocking value in redevelopment projects.
  4. Project Development Approach:
    • Identifies cessed/non-cessed properties with existing tenants.
    • Engages in development agreements or outright purchases through conveyance deeds with landlords.
    • Relies 100% on third-party contractors for construction services.
  5. Project Completion and Pipeline:
    • Completed 42 projects over 37 years, with a developed area exceeding 1,046,543.20 square feet.
    • Currently has 13 ongoing projects with a developable area of 20,34,434.40 square feet and saleable carpet area of 6,09,928 square feet.
    • Sixteen upcoming projects with an estimated carpet area of 7,44,149 square feet.
  6. Revenue Contribution:
    • The infographic provides details on the sources of revenue contribution, indicating revenue from projects and other income.
  7. Completion Timelines:
    • Completion timelines vary based on project scope, size, construction and approval complexities, and external factors.
    • Completed 4 projects in the preceding three financial years, with a historical average delivery rate of 3 to 4 projects in 3 years.
  8. Impact of Covid-19:
    • Acknowledges some delay in project completion caused by the Covid-19 pandemic during the specified period.
  9. Organizational Structure:
    • Details of the organizational structure are presented in an infographic.
  10. Historical Project Completion:
    • Completed 42 projects in the last 37 years, delivering an average of 3 to 4 projects in 3 years.

Objects of the Suraj Estate Developers Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Repayment/Prepayment of the aggregate outstanding borrowings of the company and its subsidiaries, Accord Estates ii. Private Limited and Iconic Property Developers Private Limited. iii. Acquisition of land or land development rights. iv. General corporate purposes.
DRHP of Suraj Estate Developers Limited IPO
RHP of Suraj Estate Developers Limited IPO

Suraj Estate Developers Limited IPO Details:

Open Date: Dec 18 2023
Close Date: Dec 20 2023
Total Shares: 11,111,111
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 400 Cr.
Lot Size: 41 Shares
Issue Price: ₹ 340 to ₹360 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 26 2023

Promoters And Management:

Rajan Meenathakonil Thomas, the Chairperson and Managing Director of the Company. He holds a bachelor’s degree in Arts from the Agra University. He has been associated with the Company since its incorporation. He has received Lifetime Achievment Award from ET Now in the year 2022. He has over 36 years of experience in various aspects of real estate business. Rahul Rajan Jesu Thomas, is a Whole-time Director of the Company. He holds a bachelor’s degree in Commerce from the University of Mumbai and corporate finance certificate from Harvard University. He has received 40 under 40 award from Realty+ in the year 2022. He has over 16 years of experience in various aspects of real estate business. Sujatha R. Thomas, the Non-Executive Director of the Company. She holds a bachelor’s degree in Arts from the University of Madras. She has been associated with the Company since its incorporation. She has over 30 years of experience in various aspects of real estate business.

Financials of Suraj Estate Developers Limited IPO:

Particulars ( In Crore )
2021
2022
2023
3M-FY24
Revenue from Operations 240 273 306 102
Other Income 4 1 2 0.4
Total Revenue 244 274 308 103
Operating and project expenses 164 181 166 28
Changes in Inventories -22 -56 -31 18
Employee benefits expenses 8 10 12 3
Other Expenses 4 6 8 6
EBITDA 91 133 153 47
Depreciation & Amortisation 2 4 3 1
Finance Cost 79 93 107 27
EBIT 88 129 151 47
OPM (%) 37.15% 48.53% 49.74% 45.85%
PBT 9 36 43 19
Tax 3 10 11 5
PAT 6 27 32 15
NPM (%) 2.57% 9.68% 10.41% 14.13%
No.of Shares 4.43 4.43 4.43 4.43
EPS 1.41 5.97 7.22 3.27
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Suraj Estate Developers Limited 306 32 7.22 49.8 360 1,597
Oberoi Realty Limited 4,193 1,905 52.38 26.8 1,446 52,568
Sunteck Realty Limited 362 1 0.10 N/A 477 6,989
Keystone Realtors Limited 686 80 7.20 52.6 601 6,844
Shriram Properties Limited 674 68 3.88 28.8 126 2,142
Mahindra Lifespace Developers Limited 607 103 6.56 N/A 536 8,309
D B Realty Limited 698 -90 -2.57 92.0 207 10,385
Hubtown Limited 319 30 4.00 42.0 94.2 719
* All the data is as per FY23.

Lead Manager of Suraj Estate Developers Limited IPO:

  1. Anand Rathi Securities Limited
  2. ITI Capital Limited

Registrar of Suraj Estate Developers Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Suraj Estate Developers Limited 301, 3rd Floor, Aman Chambers, Veer Savarkar Marg, Opp. Bengal Chemicals, Prabhadevi, Mumbai - 400025 Phone: +91 22 2437 7877 Email: suraj@surajestate.com Website: https://surajestate.com/

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