Suraj Estate Developers Raises INR 343 Crore to Bolster Real Estate Growth
Suraj Estate Developers has successfully raised INR 343 crore through a combination of equity shares and convertible share warrants, marking a significant step towards enhancing its market position in the real estate sector. The funds will be used for lan
Suraj Estate DevelopersReal EstateFundraisingEquity SharesConvertible WarrantsReal Estate NewsOct 27, 2024
The fundraising initiative includes INR 243 crore raised through the issue of equity shares and an additional INR 100 crore from convertible share warrants. The preferential allotment of 21,05,467 fully paid-up equity shares, each with a face value of INR 5, was approved by the board of directors. These shares were issued at a price of INR 714, including a premium of INR 709, raising a total of approximately INR 243.64 crore from non-promoter group allottees.
Following this allotment, the company’s paid-up capital has increased from INR 22,83,39,605, representing 4,56,67,921 equity shares, to INR 23,88,66,940, comprising 4,77,73,388 equity shares, all with a face value of INR 5 each.
Additionally, the company’s board of directors has approved the allotment of 13,30,000 fully convertible warrants, each priced at INR 750, totaling INR 99.75 crore. The company has received 25% of the issue price, which is INR 187.50 per warrant, amounting to a total of INR 24.93 crore. Warrant holders will have the option to pay the remaining 75% of the issue price, set at INR 562.50 per warrant, within 18 months from the date of warrant issuance.
The issuance of equity shares and convertible share warrants has led to a dilution of the promoter and promoter group's holding from 74.95% to 67.71% on a fully diluted basis. This dilution reflects Suraj Estate Developers’ commitment to expanding its shareholder base and fostering sustainable growth in both residential and commercial segments.
The successful fundraising is a significant step for Suraj Estate Developers, enhancing its operational capacity and market position. The company plans to utilize the raised funds for various purposes, including land acquisitions, working capital, general corporate needs, and expenses related to the issuance. By strategically allocating these funds, Suraj Estate Developers aims to capture emerging opportunities and deliver value to its stakeholders.
Frequently Asked Questions
How much did Suraj Estate Developers raise in total through this fundraising initiative?
Suraj Estate Developers raised a total of INR 343 crore through a combination of equity shares and convertible share warrants.
What is the purpose of the funds raised by Suraj Estate Developers?
The funds raised will be used for land acquisitions, working capital, general corporate needs, and expenses related to the issuance.
How many equity shares were issued, and what was the issue price per share?
Suraj Estate Developers issued 21,05,467 fully paid-up equity shares at a price of INR 714 per share.
What is the total value of the convertible share warrants issued, and how many warrants were issued?
The company issued 13,30,000 fully convertible warrants, each priced at INR 750, totaling INR 99.75 crore.
What is the promoter group's holding percentage after the issuance of equity shares and warrants?
The promoter and promoter group's holding has been diluted from 74.95% to 67.71% on a fully diluted basis.
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