Suraj Estate Developers Raises Rs. 343 Crore with Preferential Share Issue
Suraj Estate Developers Limited (SEDL), a renowned real estate developer in South-Central Mumbai, has successfully raised Rs. 343 crore through a preferential allotment of equity shares and convertible share warrants. The funds will be used for land acqui
Suraj Estate DevelopersReal EstateMumbaiFundraisingPreferential Share IssueReal Estate MumbaiOct 21, 2024
A group of high-net-worth individuals, asset management funds, and family offices participated in this successful fundraising round. The company issued 34,12,277 equity shares of Rs. 5 each at an issue price of Rs. 714 per share, raising a total of Rs. 243,63,65,778. Additionally, the board of directors approved the allotment of 13,30,000 fully convertible warrants at an issue price of Rs. 750 per warrant, totaling Rs. 99,75,00,000.
The company has already received 25% of the issue price for the warrants (Rs. 187.50 per warrant), amounting to Rs. 24,93,75,000. Warrant holders have the option to pay the remaining 75% of the issue price (Rs. 562.50 per warrant) within 18 months from the date of warrant issuance.
Post issuance of equity shares and convertible share warrants, the promoter and promoter group's holding will be diluted from 74.95% as of 30th September 2024 to 67.71% on a fully diluted basis.
SEDL is currently developing 13 ongoing projects with a total developable area of 20.34 lakh square feet, including 6.1 lakh square feet of saleable RERA carpet area. The company also has a pipeline of 18 upcoming projects with an estimated carpet area of 9.01 lakh square feet. Additionally, SEDL owns land and land reserves aggregating to 10,359.77 square meters, located in prime areas such as Bandra (W) and Santacruz (East).
Suraj Estate Developers is a well-established real estate developer known for delivering high-quality projects. The company's commitment to innovation, sustainability, and customer satisfaction has earned it a strong reputation in the industry. With this successful fundraising, SEDL is poised to expand its portfolio and continue its growth in the South-Central Mumbai market.
Frequently Asked Questions
How much did Suraj Estate Developers raise through the preferential allotment?
Suraj Estate Developers raised Rs. 343 crore through a preferential allotment of equity shares and convertible share warrants.
What will the funds be used for?
The funds will be used for land acquisitions, working capital, general corporate purposes, and issue-related expenses.
How many equity shares were issued and at what price per share?
34,12,277 equity shares were issued at an issue price of Rs. 714 per share.
What is the total value of the convertible share warrants issued?
The total value of the convertible share warrants issued is Rs. 99,75,00,000.
How will the promoter and promoter group's holding be affected after the issuance?
The promoter and promoter group's holding will be diluted from 74.95% to 67.71% on a fully diluted basis.
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