Unlisted shares of Suraj Estate Developers Ltd are trading Rs 70 higher in the grey market, which is a 19.44 per cent listing gain from the public issue
Suraj Estate IPO: The initial public offering of real estate firm Suraj Estate Developers Ltd (SEDL), which was opened for public subscription on Monday, has been fully subscribed. Till 11:37 am on the second day of bidding on Tuesday, the Rs 400-crore IPO has received 1.27 times subscription, garnering bids for 98,74,563 shares as against 77,77,777 shares on offer.
The IPO will remain open till Wednesday, December 20. The price band of the IPO has been fixed at Rs 340-Rs 360 per share.
The Suraj Estate Developers IPO allotment might take place on December 21, while its share listing will take place on December 26 on both BSE and NSE.
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Suraj Estate IPO GMP Today
According to market observers, unlisted shares of Suraj Estate Developers Ltd continue to trade Rs 70 higher in the grey market as compared with its issue price. The Rs 70 grey market premium or GMP means the grey market is expecting a 19.44 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Suraj Estate IPO: Should You Subscribe?
Giving a ‘Subscribe’ rating to the IPO, brokerage firm Geojit in its note said, “At the upper price band of Rs.360, SEDL is available at a P/Bv of 3.3x (FY24E annualised), which appears to be fairly priced. Considering its consistent growth in both topline and bottomline, healthy return ratios, asset-light business model, redevelopment opportunities and promising industry outlook, we assign a ‘Subscribe’ rating on a short to medium-term basis.”
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Suraj Estate IPO: Lot Size, Minimum Investment
The Suraj Estate IPO is entirely a fresh issuance of equity shares worth Rs 400 crore with no offer-for-sale (OFS) component. Its price has been fixed at Rs 340-Rs 360 per share.
Investors can bid for a minimum of 41 equity shares and in multiples of 41 equity shares thereafter. The minimum amount of investment required by retail investors is Rs 14,760.
Proceeds would be used towards the payment of debt availed by the company and its subsidiaries — Accord Estates and Iconic Property Developers– and the acquisition of land.
Besides, a portion will also be used for general corporate purposes.
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Suraj Estate Developers has developed real estates across the residential and commercial sectors in the South Central Mumbai region and has a residential portfolio located in the markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel.
For the financial year ended March 31, 2023, the company’s revenue from operations increased to Rs 305.74 crore from Rs 272.72 crore in the previous fiscal.
Besides, the company’s profit rose to Rs 32.06 crore in 2022-23 as compared to Rs 26.50 crore in the preceding financial year.
ITI Capital and Anand Rathi Advisors are the book-running lead managers to the offer.
