Suratwwala Business Group IPO

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(i) Founded in 2008, they are a real estate development company primarily focusing on the development of residential and commercial projects in the Pune district. The business activities comprise of development and sale of residential as well as commercial properties and the maintenance of the properties developed by us. Apart from the development and maintenance business, they also focus on providing the space on rent such as renting for mobile towers, hoardings, and banners on building or renting of the unsold space for short durations.

(ii) The Company has so far completed one commercial and one residential project, both of which are located in the Pune district. The Commercial Project, namely, Suratwwala Mark Plazzo – Phase I, located in Hinjawadi, Pune is built on a land area of 4525 sq. mts. and comprises 9 floors having space for 95 offices, 5 Multipurpose showrooms which can be used as restaurants, shops or showrooms, and one rooftop restaurant. They commenced the construction of Suratwwala Mark Plazzo – Phase I in July’15 and successfully completed it in July’16. They are now in the process to develop Phase II of the said commercial project.

(iii) The Residential Project, Suratwwala Sweet 16 was company’s first real estate project undertaken by the Company in September 2008 which was completed in June 2010. The project includes 16 one BHK Apartments which are available in the size of the saleable area of around 678 sq. ft to 712 sq. ft. The total land area of the project is 870 sq. mtrs.

Objects of the Suratwwala Business Group IPO:

The company intends to utilise the proceeds of the Issue to meet the following objects: 1. To meet Working Capital requirements 2. General Corporate Purpose 3. To meet issue expenses

Suratwwala Business Group IPO Details:

Open Date: Aug 03 2020
Close Date: Aug 05 2020
Total Shares: 4,600,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue price
Issue Size: 6.90 Cr.
Lot Size: 8000 Shares
Issue Price: ₹ 15 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 13 2020

Promoters And Management:

The Promoters are Mr. Jatin Dhansukhlal Suratwala and Mr. Manoj Dhansuklal Suratwala. Both have rich experience in growing the real estate business in a more organized manner. Under their leadership and guidance the company have been able to cope with the changing scenario and challenges in the real estate market. The Company is a member of CREDAI PUNE METRO, thereby expanding their horizon to various sectors in real estate business.

Financials of Suratwwala Business Group IPO:

1. The company has shown no growth in the last 3 years. The revenue is flat at 10 Crores. 2. The PAT has gone down from 2.96 Crores in 2017 to 0.32 Crores in 2020. 3. The cash flow from operations is also negative. 4. The asking P/E of 83. 5. As on 31.03.2020, the D/E is 1.64. Anything above 1 is not good for the company.

Recommendation on Suratwwala Business Group IPO:

Review and Recommendation of InvestorZone are 1/10.

Lead Manager of Suratwwala Business Group IPO:

  1. Hem Securities Limited

Registrar of Suratwwala Business Group IPO:

  1. Link Intime India Private Limited

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