Suraj Estate to Raise ₹500 Crore via Preferential Issue of Shares and Warrants
Suraj Estate Developers Ltd. is set to raise up to ₹500 crore through a preferential issue of shares and warrants to eligible shareholders. The company's board has approved the fundraise, which will see shares issued to notable names including Vanaja Sund
Suraj Estate Developers LtdReal EstateIpoStock MarketFundraisingReal Estate NewsAug 20, 2024
The issue price for the preferential shares is at a 12.8% discount to Monday's closing price of the shares of the real estate developer. Notable names who will be issued shares on a preferential basis include Vanaja Sundar Iyer, who already has a 1.02% stake in the company as of the June quarter through Si Investments and Broking Pvt. Ltd.
Another name in the list is Kewal Kiran Clothing, a listed entity, who will also be issued 2.5 lakh equity shares of the company on a preferential basis. Kewal Kiran Clothing had no prior stake in the company. Broking firm Prabhudas Lilladher will also be issued shares in this preferential issue.
Additionally, the company will also be issuing 13.3 lakh convertible warrants to Ramesh Sawalram Saraogi at a price of ₹750 per warrant, which is a discount of 8.4% to Monday's closing price, and aggregating to the remaining ₹99 crore. Ramesh Saraogi's Navratri Share Trading Pvt. Ltd. owns a 2.03% stake in the company at the end of the June quarter.
Every warrant allotted will be convertible into one equity share within a period of 18 months from the date of allotment. Suraj Estate is among the final few IPOs of 2023 that listed on the bourses. Shares had their issue price fixed at ₹360 per share and since then, the stock has more than doubled in value.
This year itself has seen the stock surge 150%, having briefly slipped below its IPO price to make an all-time low of ₹255. Shares of Suraj Estate Developers ended 2.5% higher on Monday at ₹819.
Suraj Estate Developers Ltd. is a real estate developer that listed on the bourses in 2023. The company has seen its stock surge 150% this year, despite briefly slipping below its IPO price.
The Indian real estate sector has seen a significant boost in recent years, driven by government initiatives and increasing demand for housing. Suraj Estate Developers Ltd. is one of the many real estate developers that have benefited from this trend.
Frequently Asked Questions
What is the amount of funds that Suraj Estate Developers Ltd. plans to raise?
Suraj Estate Developers Ltd. plans to raise up to ₹500 crore through a preferential issue of shares and warrants.
Who are the notable names that will be issued shares on a preferential basis?
Notable names who will be issued shares on a preferential basis include Vanaja Sundar Iyer and Kewal Kiran Clothing.
What is the issue price for the preferential shares?
The issue price for the preferential shares is at a 12.8% discount to Monday's closing price of the shares of the real estate developer.
What is the conversion period for the warrants?
Every warrant allotted will be convertible into one equity share within a period of 18 months from the date of allotment.
How has the stock of Suraj Estate Developers Ltd. performed this year?
The stock of Suraj Estate Developers Ltd. has surged 150% this year, despite briefly slipping below its IPO price.
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