Suraj Estate Developers Ltd on Monday said it has utilised ₹285 crore from the IPO proceeds to repay the total outstanding loans of the company and its subsidiaries.
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The Mumbai-based real estate developer listed on stock exchanges on December 26, 2023, after completing a ₹400 crore initial public offering (IPO).
Suraj Estate in a stock exchange filing stated that it utilised ₹285 crore from the IPO proceeds for repayment or pre-payment of the total outstanding borrowings of the company and its subsidiaries.
The subsidiaries of the company are Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited.
The company mentioned that the funds have been utilised in accordance with the objects of the issue appearing in the prospectus under the heading utilisation of the net proceeds. It also noted that there was “no deviation in the utilisation of funds and the same has been utilised as per the objects mentioned in the prospectus of the company”.
Last month, the real estate developer hit the capital market with a ₹400 crore IPO. The issue of around 1.11 lakh shares was entirely a fresh issuance of equity shares with no Offer for Sale component. The price range was ₹340-₹360 a share.
Shares were listed on NSE and BSE on December 26, 2023.
The company, in its prospectus, had mentioned that the IPO proceeds would be utilised for the payment of debt availed by the company and its arms — Accord Estates and Iconic Property Developers.
Besides, funds would be utilised for the acquisition of land and for general corporate purposes.
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Suraj Estate has developed realty projects across residential and commercial sectors in the South Central Mumbai region. Its residential projects are located in Mahim, Matunga, Dadar, Prabhadevi and Parel.
Suraj Estate shares were trading 1.45% lower at ₹347.3 apiece on BSE at 10:09am.
