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Suraj Estate Raises Rs 343 Cr for Expansion

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By Rediff Money Desk, New Delhi   Oct 21, 2024 11:58

Suraj Estate Developers raises Rs 343 crore through share issue and warrants for land acquisition, working capital, and business expansion. The funds will be used to strengthen its position in the residential and commercial real estate segments.
Suraj Estate Raises Rs 343 Cr for Expansion
Photograph: Shailesh Andrade/Reuters
New Delhi, Oct 21 (PTI) Realty firm Suraj Estate Developers has raised Rs 343 crore through issue of shares and warrants mainly to buy land and meet its working capital requirements.

The company has secured funds through preferential allotment of equity shares amounting to about Rs 243 crore and an additional sum of around Rs 100 crore through issue of convertible share warrants.

The funds will be utilised for land acquisitions, working capital, general corporate purposes, and issue-related expenses, Suraj Estate said in a statement.

A group of high-net-worth individuals, asset management funds and family offices participated in the successful fundraising round.

Rajan Meenathakonil Thomas, Chairperson and Managing Director at Suraj Estate Developers, said, "This timely fund raise will provide us with the growth capital to expand our operations and diversify our product offerings. We will strategically utilize these funds to strengthen our position in the residential and commercial real estate segments, capture new opportunities, and deliver sustainable value to our stakeholders."

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 company's board of directors approved the allotment of 13,30,000 fully convertible warrants at an issue price of Rs 750 per warrant, with a total value of Rs 99,75,00,000.

The company has received 25 per cent of the issue price for the warrants (Rs 187.50 per warrant), totalling to Rs 24,93,75,000.

Warrant holders are entitled to apply for the remaining 75 per cent 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 holding will be diluted from 74.95 per cent as of 30th September, 2024 to 67.71 per cent on a fully diluted basis.

Since incorporation, Suraj Estate Developers has completed 42 projects with a developed area of more than 1,046,543.20 square feet in the South-Central Mumbai region.

In addition to the completed projects, the company has 13 ongoing projects with a developable area of 20.34 lakh square feet and saleable RERA carpet area of 6.1 lakh square feet and 18 upcoming projects with an estimated carpet area of 9.01 lakh square feet.

Additionally, the company also has land and land reserves aggregating to 10,359.77 square metres situated at Bandra (W) and Santacruz (East).
Source: PTI
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