Suraj Estate Developers Secures INR 343 Crore through Equity and Convertible Warrants
Suraj Estate Developers has successfully raised INR 343 crore through a preferential allotment of equity shares and convertible share warrants. This fundraising bolsters the company’s operational capacity and positions it for growth in the real estate mar
Suraj Estate DevelopersReal EstateEquity SharesConvertible WarrantsFundraisingReal EstateOct 27, 2024
Earlier this week, the board of directors' preferential issue committee approved the allotment of 21,05,467 fully paid-up equity shares with a face value of INR 5 each. These shares were issued at a price of INR 714 per share, including a premium of INR 709. This allotment to non-promoter group allottees raised a total of approximately INR 243.64 crore. Following this issuance, 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, each with a face value of INR 5.
In addition to the equity shares, the company's board of directors has also approved the allotment of 13,30,000 fully convertible warrants at an issue price of INR 750 per warrant, amounting to a total value of INR 99.75 crore. The company has already received 25% of the issue price, which is INR 187.50 per warrant, totaling INR 24.93 crore. Warrant holders have the right to apply for the remaining 75% of the issue price, set at INR 562.50 per warrant, within 18 months from the date of warrant issuance.
This fundraising initiative has led to a dilution of the promoter and promoter group's holdings from 74.95% as of earlier this month to 67.71% on a fully diluted basis.
Suraj Estate Developers is a well-established real estate company known for its commitment to delivering high-quality residential and commercial projects. The successful raise of INR 343 crore is a significant step towards enhancing the company's operational capacity and market position. The company aims to leverage these funds to capture emerging opportunities, expand its portfolio, and deliver value to its stakeholders. The dilution of promoter holdings reflects the company's dedication to broadening its shareholder base and fostering sustainable growth in both residential and commercial real estate segments.
Frequently Asked Questions
How much did Suraj Estate Developers raise through the preferential allotment of equity shares?
Suraj Estate Developers raised INR 243 crore through the preferential allotment of equity shares.
What is the total value of the convertible share warrants issued by Suraj Estate Developers?
The total value of the convertible share warrants issued is INR 99.75 crore.
How much has the paid-up capital of Suraj Estate Developers increased by after the new issuance?
The paid-up capital has increased from INR 22,83,39,605 to INR 23,88,66,940.
What is the dilution in the promoter group's holding after the fundraising?
The promoter and promoter group's holding has been diluted from 74.95% to 67.71% on a fully diluted basis.
What are the main purposes for which the raised funds will be used?
The raised funds will be used for land acquisitions, working capital, general corporate needs, and expenses related to the issuance.
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