Suraj Estate Developers Limited

About Suraj Estate Developers Limited  Incorporated in 1986, Suraj Estate Developers is one of Mumbai’s leading real estate developers. The company develops real estate across the residential and commercial sectors in Mumbai’s south-central region. It focuses on the value luxury, luxury and commercial segments in the Mahim, Matunga, Dadar, Prabhadevi and Parel areas of south-central Mumbai.  Its expertise lies in the redevelopment of tenanted properties. It does so by identifying cessed/ non cessed properties with existing tenants and entering into a development agreement or an outright purchase with the landlords of such properties.  Since inception, the company has completed 42 projects, with a developed area of over one million square feet. Besides this, the company has 13 ongoing projects and 16 upcoming projects. Most of the company’s projects are executed on land owned by the company or through development agreements with landowners.  Besides the south-central region, the company has also ventured into the residential real estate market of Bandra and Santacruz region. As of 31 October 2023, it has land reserves of 10,359.77 square metres at Bandra (West) and Santacruz (East), which the company intends to develop.  In the commercial segment, the company has constructed and sold corporate offices to institutional clientele such as Saraswat Co-operative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar). It is also planning to develop a 16-storey commercial building situated in Tulsi Pipe Road, Mahim.  Between FY21 and FY23, it saw a CAGR rise of over 8% in its revenue from operations and 72% in its profit. Moreover, rising Indian household income and increasing urbanisation will be key driving factors behind the Indian real estate sector. As per reports, over 100 million households are estimated to be added to the upper mid-income and lower mid-income brackets combined by 2030. All of this could be beneficial for the company.  And now, Suraj Estate Developers Limited is coming out with its initial public offer (IPO). The entire IPO will be a fresh issue and the money raised will be utilised for the repayment or prepayment of borrowings, acquisition of land and general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Suraj Estate Developers Limited IPO:     Company Name  Suraj Estate Developers Limited Limited   Company Type  Private    Company Established On  1986   Suraj Estate Developers Limited IPO Opening Date  18th December 2023    Suraj Estate Developers Limited IPO Closing Date  20th December 2023   Suraj Estate Developers Limited IPO Allotment Status  21st December 2023    Credit of Shares to the Demat Account  22nd December 2023   Suraj Estate Developers Limited IPO Listing Date  26th December 2023    Suraj Estate Developers Limited IPO Face Value  ₹5 per share   Suraj Estate Developers Limited IPO Lot Size  41 shares    Suraj Estate Developers Limited IPO Issue Size  Approx ₹400 crore   Suraj Estate Developers Limited IPO to be Listed on  BSE, NSE    Suraj Estate Developers Limited IPO Price band  ₹ ₹340 to ₹360 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 239 crore  ₹ 272 crore  ₹ 305 crore    Net Profit  ₹ 6.2 crore  ₹ 26.5 crore  ₹ 32crore               Here’s a quick look at Suraj Estate Developers Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Established brand with a long-standing presence of 36 years in the residential real estate market.  The portfolio consists of multiple price points in the “value luxury” and “luxury” segments ranging from ₹1 crore to ₹13 crore.  Strong expertise in tenant settlement in redevelopment projects as 41 of the total 42 completed projects were redevelopment projects.  An experienced marketing and sales team that tracks market trends, which allows it to position its projects appropriately in terms of location, price points, and marketing strategy.  Maintained an EBITDA margin of 36%, 48% and 49% in FY21, FY22 and FY23 respectively.   Risks and threats   Concentrated entirely in the south-central Mumbai region.  Requires compliance with the provisions of Regulation 33(7) of the Development Control and Promotion Regulation, 2034 and subject to extensive government regulations.  As of 31 October 2023, the company has a total of 216 unsold units across its ongoing projects.  Operates in a fragmented industry and faces competition from Macrotech Developers, Oberoi Realty, D B Realty and Hubtown Developers. Also, the business is subject to seasonality.  Has experienced negative cash flows from investing activities in the last three consecutive years.  Operates a capital-intensive business and has total financial indebtedness of ₹568 crore as of 30 September 2023.            Suraj Estate Developers Limited IPO details  |Suraj Estate Developers Limited IPO date  According to the offer document filed by the company with the SEBI, the Suraj Estate Developers IPO’s opening date – in other words, the Suraj Estate Developers IPO launch date – will be 18th December 2023. The Suraj Estate Developers IPO closing date is 20th December 2023. After this, investors will be updated about the allotment status on 21st December 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 22nd December 2023. The Suraj Estate Developers IPO listing date is 26th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Suraj Estate Developers Limited IPO Price Band  The entire IPO is a fresh issue. The Suraj Estate Developers IPO price band has been set between ₹340 to ₹360 per share. Interested investors can choose a price within this band to apply for the IPO.  The Suraj Estate Developers IPO listing price will be determined on 26th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Suraj Estate Developers Limited IPO Lot size  The Suraj Estate Developers IPO details have been declared. The Suraj Estate Developers IPO lot size is set at 41 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Suraj Estate Developers IPO issue size is approx ₹400 crore.           How to pre-apply for the Suraj Estate Developers Limited IPO?  You can pre-apply for the Suraj Estate Developers Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Suraj Estate Developers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Suraj Estate Developers Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Suraj Estate Developers Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Suraj Estate Developers Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Suraj Estate Developers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Suraj Estate Developers LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Suraj Estate Developers Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Suraj Estate Developers Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Suraj Estate Developers Limited IPO  To apply for the Suraj Estate Developers Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Suraj Estate Developers Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Suraj Estate Developers Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.