Suraj Estate Developers IPO Launch: Aims for ₹400 Crore - Key Details and Market Dynamics

Suraj Estate Developers Limited has officially opened its doors to investors today as it launches its Initial Public Offering (IPO), eyeing an impressive fundraising target of ₹400 crore. The subscription period for the IPO spans from today and extends until Wednesday, providing potential investors with a limited window to participate in this major financial event.

The Mumbai-based real estate firm has strategically set its sights on mobilizing ₹400 crore through this IPO, and the company has outlined diverse applications for these funds. Market analysts are closely monitoring Suraj Estate Developers' IPO, which is among the seven public issues up for bidding this week.

Key Points to Consider:

1. Grey Market Premium (GMP): As anticipation builds, the shares of Suraj Estate Developers are already commanding a premium of ₹70 in the grey market today. This figure represents a significant increase from the earlier ₹56 GMP, underscoring the market's positive sentiment towards the IPO.

2. Issue Price: Suraj Estate Developers has fixed the price band for its shares at ₹340-360 per equity share, reflecting a carefully considered valuation strategy.

3. Offer Details: The IPO exclusively comprises a fresh issue of 1.11 crore shares, with no Offer-for-Sale (OFS) component in the mix.

4. Lot Size: Investors will have the opportunity to subscribe in lots of 41 shares, and thereafter in multiples of 41.

5. Allotment and Listing Dates: According to the T+3 listing rule, share allocation is expected around December 21, while the tentative listing date on the stock exchange is slated for December 26.

6. Lead Managers: ITI Capital Limited and Anand Rathi Securities Limited are spearheading the IPO, with Link Intime India Private Limited serving as the official registrar.

7. Objectives of Fund Utilization: The net proceeds from the IPO are earmarked for specific purposes. The company plans to allocate ₹285 crore to clear existing debt, earmarking ₹35 crore for the acquisition of land or land development rights in the Mumbai Metropolitan Region (MMR). The remaining funds will be allocated for general corporate purposes.

8. Company Profile: Founded in 1986, Suraj Estate Developers Limited, owned by Rajan Meenathakonil Thomas and family, specializes in developing residential and commercial properties in Mumbai's south-central region. The company boasts an impressive track record with 42 completed projects in its portfolio, according to information from Moneycontrol.

Investors and industry observers are keenly watching the developments surrounding Suraj Estate Developers' IPO, and its success is expected to have far-reaching implications in the real estate sector. As the subscription period unfolds, market dynamics and investor sentiment will play a crucial role in determining the IPO's ultimate success.