Sunteck Realty Soars as Board Approves Rs 500 Crore Warrant Issue
Sunteck Realty, a prominent Mumbai-based luxury real estate developer, saw its shares rise by 3.52% after the board approved a warrant issue to raise Rs 500 crore. The move is expected to bolster the company's financial position and support ongoing projects.
Sunteck RealtyReal EstateWarrant IssueBoard ApprovalLuxury DevelopmentReal Estate MumbaiSep 08, 2025
The warrants will be issued to a mix of promoter and non-promoter investors, including Samagra Wealthmax, Glint Infraprojects, Bhuwalka Steel Industries, Utpal Sheth, Mukul Agrawal, BW South Asia, and NTAsian Discovery Master Fund. Each warrant is convertible into one equity share and can be exercised within 18 months. Investors will pay 25% of the issue price upfront, with the proposal subject to shareholder and regulatory approvals.
In addition to the warrant issue, the board appointed architect Ajeet Singh as an additional and whole-time director for a five-year term, effective from September 5, 2025. This appointment is pending shareholder approval.
Sunteck Realty, a leading luxury real estate developer based in Mumbai, has a robust development portfolio of 52.5 million square feet across 32 projects. The company reported a 46.75% increase in net profit to Rs 33.43 crore in the first quarter of FY26, despite a 40.45% decrease in revenue from operations to Rs 188.32 crore compared to the same period in FY25. This financial performance highlights the company's ability to navigate market challenges and sustain profitability.
The warrant issue and strategic appointments are expected to strengthen Sunteck Realty's financial position and support its ongoing and future projects. Investors and stakeholders are optimistic about the company's growth prospects and the potential returns from the new capital infusion.
Frequently Asked Questions
What is the significance of the warrant issue for Sunteck Realty?
The warrant issue is significant as it will raise Rs 500 crore for Sunteck Realty, providing the company with additional capital to support its ongoing and future projects. This move is expected to strengthen its financial position and enhance shareholder value.
Who are the investors in the warrant issue?
The investors in the warrant issue include a mix of promoter and non-promoter investors such as Samagra Wealthmax, Glint Infraprojects, Bhuwalka Steel Industries, Utpal Sheth, Mukul Agrawal, BW South Asia, and NTAsian Discovery Master Fund.
What are the terms of the warrant issue?
The warrants are convertible into one equity share each and can be exercised within 18 months. Investors will pay 25% of the issue price upfront, with the proposal subject to shareholder and regulatory approvals.
What is the recent financial performance of Sunteck Realty?
Sunteck Realty reported a 46.75% increase in net profit to Rs 33.43 crore in the first quarter of FY26, despite a 40.45% decrease in revenue from operations to Rs 188.32 crore compared to the same period in FY25.
Who is Ajeet Singh, and what is his role at Sunteck Realty?
Ajeet Singh is an architect who has been appointed as an additional and whole-time director of Sunteck Realty for a five-year term, effective from September 5, 2025. His appointment is pending shareholder approval.
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