Real estate developer Suraj listed a 4.5% discount to the IPO price at launch

Developer Suraj Estate’s Rs 400 crore IPO was oversubscribed 15.65 times, with investors bidding for 12.88 crore shares against an offer of 82.35 million shares.

Shares of real estate firm Suraj Estate Developers Ltd opened 4.5 percent lower on December 26 after its initial public offering was oversubscribed by nearly 16 times last week.

The stock opened at Rs 343.80 on the BSE and was down 4.5 percent in the open. At 10:05 am, the stock was trading at Rs 335 on the BSE, down 7 percent from the share price of Rs 360 per share.

Developer Suraj Estate’s Rs 400 crore IPO was oversubscribed 15.65 times, with investors bidding for 12.88 crore shares against an offer of 82.35 million shares.

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Owned by Rajan Meenathakonil Thomas and family, the developer recorded 21% growth in net profit at Rs 32.06 crore for the year ended March FY23. Its revenue for the quarter was at Rs 305.7 crore. In the quarter ended June FY24, its net profit stood at Rs 14.53 crore and revenue stood at Rs 102.41 crore.

The real estate developer will use the 285 billion rupiah debt repayment, and 35 million rupiah will be used for land acquisition or land development rights in Munlapamok district. The remaining money will be set aside for general corporate purposes.

Qualified Institutional Buyers (QIBs) showed maximum interest as they bid 24.31 times the reserved portion. The allotted quota for retail investors was booked 9.30 times while the high net worth individuals (HNIs) opted for 18.9 times the allotted portion.

Suraj Real Estate Developers is among the prominent residential real estate developers, focusing on building and developing residential and commercial projects in and around South Central Mumbai. The company does not provide any in-house construction services and is 100 percent dependent on third-party contractors for construction services on its projects.