Suraj Estate Developers
Book Building issueMainboard₹400 Cr issue
-4.50%
Listing gain over issue price
Issue size
₹400 Cr
1 lot at cut-off
₹14,760
Lot size
41shares
Open
18 Dec 2023
Close
20 Dec 2023
Allotment
21 Dec 2023
Listing
26 Dec 2023
Listing performance
Issue price
₹360
Listed at
₹343.80
Listing-day close
₹334.50
Latest price
₹170.99
Close on 23 Oct 2026
Listing gain
-4.50%
Return since issue
-52.50%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Dec 2023 – 20 Dec 2023
- Listing date
- 26 Dec 2023
- Face value
- ₹5 per share
- Issue price
- ₹360 per share
- Lot size
- 41 shares
- Issue type
- Book Building issue
- Total issue size
- ₹400 Cr
- Market cap at offer price
- ₹1,597 Cr
- Promoter holding
- 100.00% → 74.95% pre-issue → post-issue
- ISIN
- INE843S01025
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ITI Capital Ltd.
- Registered office
- 301, 3rd Floor, Aman Chambers, Veer Savarkar Marg, Opp.Bengal Chemicals, Prabhadevi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 33,33,333 | — | — |
Application size
Minimum 41 shares per lot, in multiples, at ₹360
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 41 | ₹14,760 |
| Retail (max) | 13 | 533 | ₹1,91,880 |
| S-HNI (min) | 14 | 574 | ₹2,06,640 |
| S-HNI (max) | 67 | 2,747 | ₹9,88,920 |
| B-HNI (min) | 68 | 2,788 | ₹10,03,680 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
33,33,333
Anchor portion
₹120 Cr
at ₹360 per share
Valuation and performance
Valuation at offer price
₹360 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.10 | — |
| P/E (×) | 35.64 | — |
| Market cap | — | ₹1,597 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 58.18%
- ROCE
- 21.93%
- Debt / equity
- 8.31
- PAT margin
- 10.49%
- NAV per share
- ₹22.49
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Suraj Estate Developers
Suraj Estate Developers Limited, incorporated in 1986, is engaged in real estate development across residential and commercial sectors in the South Central Mumbai region. The company specializes in redevelopment of tenanted properties under Regulation 33(7) of the Development Control and Promotion Regulations (DCPR), with core competence in tenant settlement. Since incorporation, the company has completed 42 projects with a developed area of over 1,046,543.20 square feet. As of October 31, 2023, it operates 13 ongoing projects with 609,928 square feet of carpet area for sale and 16 upcoming projects with an estimated carpet area of 744,149 square feet. The company's revenue generation comes primarily from the sale of residential units in various segments and commercial office spaces. Revenue from operations grew from ₹2,399.87 million in Fiscal 2021 to ₹3,057.44 million in Fiscal 2023.
Company Analysis
from RHPSuraj Estate Developers Limited is a real estate developer focused on residential and commercial property development in South Central Mumbai since 1986.
Suraj Estate Developers Limited, incorporated in 1986, is engaged in real estate development across residential and commercial sectors in the South Central Mumbai region. The company specializes in redevelopment of tenanted properties under Regulation 33(7) of the Development Control and Promotion Regulations (DCPR), with core competence in tenant settlement. Since incorporation, the company has completed 42 projects with a developed area of over 1,046,543.20 square feet. As of October 31, 2023, it operates 13 ongoing projects with 609,928 square feet of carpet area for sale and 16 upcoming projects with an estimated carpet area of 744,149 square feet. The company's revenue generation comes primarily from the sale of residential units in various segments and commercial office spaces. Revenue from operations grew from ₹2,399.87 million in Fiscal 2021 to ₹3,057.44 million in Fiscal 2023.
Real Estate DevelopmentResidential Real EstateCommercial Real Estate
Objects of the Issue
- Repayment/Prepayment of the aggregate outstanding borrowings of our Company and our Subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited ₹2,850.00 million p.27
- Acquisition of land or land development rights ₹350.00 million p.27
- General corporate purposes p.27
- Repayment or prepayment of certain outstanding borrowings availed by our Company and our Subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited ₹2,850.00 million p.64
- Acquisition of land or land development rights p.64
- General corporate purposes p.64
- Repayment/Prepayment of the aggregate outstanding borrowings of our Company and our Subsidiaries, Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited ₹2,850.00 million p.134
- Acquisition of land or land development rights ₹350.00 million p.143
- General corporate purposes p.144
Issue Structure
- Total Issue
- ₹4,000 million
- Fresh Issue
- Up to [●] equity shares of face value of ₹5 each aggregating up to ₹4,000 million
- Offer for Sale
- Not applicable
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹5 each
Business Model
The company earns revenue primarily from the sale of developed residential and commercial real estate units. The business model involves identifying cessed/non-cessed properties with existing tenants, acquiring development rights or outright purchase from landowners through development agreements or conveyance deeds, settling tenants as per DCPR regulations, and developing mixed-use projects with residential units across value luxury, luxury segments and commercial office spaces. The company outsources all construction services to third-party contractors. Revenue is recognized upon sale of units to customers.
Business Segments
Construction and development of high quality 1 BHK flats and compact 2 BHK flats, catering to aspirational buyers and providing value for money residential projects in premium locations
Construction and development of high quality 2 BHK flats, 3 BHK flats and 4 BHK flats, catering to ultra-high net worth and high net worth individual buyers in the South Central Mumbai region
Construction and development of commercial offices on a built-to-suit model for select clientele and boutique offices
Development of 1 BHK flats and compact 2 BHK flats catering to aspirational buyers providing value for money residential projects in premium locations
Development of 2 BHK, 3 BHK and 4 BHK flats catering to ultra-high net worth and high net worth individual buyers in South Central Mumbai region
Accord Estates Private Limited is a subsidiary engaged in residential real estate development projects in Mumbai.
Iconic Property Developers Private Limited is a subsidiary engaged in residential real estate development projects in Mumbai.
Skyline Realty Private Limited is a subsidiary engaged in residential real estate development projects in Mumbai.
Construction and development of high quality 1 BHK flats (300-500 sq ft carpet area) and compact 2 BHK flats (500-800 sq ft carpet area), catering to aspirational buyers with ticket sizes ranging from ₹10.00 million to ₹30.00 million
Construction and development of high quality 2 BHK flats (800-950 sq ft), 3 BHK flats (1,000-1,500 sq ft) and 4 BHK flats (1,800-2,200 sq ft), catering to ultra-high net worth and high net worth individuals with ticket sizes ranging above ₹30.00 million and up to ₹130.00 million
Construction and development of commercial offices on a built-to-suit model for select clientele and boutique offices
Development and sale of luxury residential projects
Development and sale of value luxury residential projects comprising 1 BHK and compact 2 BHK apartments
Development of built-to-suit commercial buildings
Redevelopment of co-operative housing societies and existing structures
Development and sale of residential and commercial premises in India
Construction and development of 1 BHK flats ranging from 300 to 500 square feet carpet area and compact 2 BHK flats ranging from 500 to 800 square feet carpet area catering to aspirational buyers and providing value for money residential projects in premium locations.
Construction and development of 2 BHK flats ranging from 800 to 950 square feet, 3 BHK flats ranging from 1,000 to 1,500 square feet and 4 BHK flats ranging from 1,800 to 2,200 square feet catering to ultra-high net worth and high net worth individual buyers in the South Central Mumbai region.
Construction and development of commercial offices on a built-to-suit model for select clientele and boutique offices.
Development and sale of residential units including value luxury segment projects
Development and sale of commercial real estate units
SWOT Analysis
Strengths
- • 37-year operating history with 42 completed projects(p.24)
- • Established expertise in tenant settlement and redevelopment(p.24)
- • Strong revenue growth trajectory(p.25)
- • High profitability margins with 49.39% EBITDA margin(p.55)
- • Solid ROE of 58.18% demonstrating strong shareholder returns(p.55)
- • Established brand with long-standing presence in value luxury and luxury segments(p.148)
- • Diversified portfolio across price points in value luxury and luxury segments(p.148)
- • Expertise in tenant settlement in redevelopment projects in key submarkets(p.148)
- • Experienced promoter and management with 36 years of real estate business experience(p.148)
- • Established brand with 36+ years presence in South Central Mumbai's Value Luxury and Luxury segments(p.230)
- • Track record of 42 completed projects with 97.62% redevelopment expertise(p.226)
- • Strong tenant settlement expertise enabling value unlock on redevelopment land(p.233)
- • Ability to sell 80%+ of projects during construction phase generating early cash flow(p.231)
- • High-quality sales and market positioning with diversified product offerings across price points(p.227)
- • Experienced promoter with 36+ years and whole-time director with 16+ years real estate experience(p.234)
- • Experienced design and planning coordination with reputable international and domestic architects(p.250)
- • Advanced construction techniques and quality assurance systems(p.251)
- • Established track record of successful project delivery across multiple segments(p.264)
- • Recognition and awards from industry bodies(p.265)
- • Diversified marketing and sales approach with multi-channel strategy(p.251)
- • Pre-sales model with construction-linked payment structure(p.252)
- • Established IT infrastructure for project and operational efficiency(p.253)
- • Established real estate development business in India with long operational history(p.321)
- • Strong promoter shareholding and stable ownership structure(p.342)
- • Diverse portfolio of projects across residential and commercial segments(p.350)
- • Significant construction work-in-progress inventory base(p.339)
- • Growing revenue trajectory with year-on-year increases(p.350)
- • Long-standing presence in real estate redevelopment specialization(p.385)
- • Established track record with 42 completed projects and strong brand recall(p.388)
- • Proven expertise in tenant rehabilitation under regulatory framework(p.389)
- • Diversified project portfolio across value luxury and luxury segments(p.389)
- • Strong operational profitability with improving margins(p.392)
Weaknesses
- • Heavy geographic concentration with all projects in South-Central Mumbai only(p.37)
- • 216 unsold units across ongoing projects as of October 31, 2023(p.41)
- • High debt-to-equity ratio of 8.31 as of Fiscal 2023(p.55)
- • Total unsecured loans of ₹774.35 million which can be recalled anytime(p.56)
- • 100% dependence on third-party contractors for construction(p.24)
- • Untraceable corporate records from 1986-1998(p.53)
- • Significant related-party borrowing with concentration risks(p.62)
- • Subsidiaries incurring losses and dependent on financial support(p.81)
- • High leverage in Material Subsidiary with negative equity(p.65)
- • Non-payment of employee benefits with repeated delays(p.70)
- • Outstanding disputed tax liabilities(p.69)
- • High leverage with net debt of ₹5,650.73 million as of March 31, 2023(p.151)
- • Material subsidiary Accord Estates with negative equity of ₹(44.52) million as of June 30, 2023(p.141)
- • Iconic Property Developers subsidiary has negative equity of ₹(9.55) million(p.142)
- • Certain historical company records and documents not traceable with RoC(p.33)
- • Large inventories of ₹6,341.09 million indicating project concentration risk(p.151)
- • High net debt of ₹5,509.53 million as of June 30, 2023(p.230)
- • Dependence on third-party contractors for 100% of construction services(p.226)
- • Limited diversification outside South Central Mumbai region with only recent entry to Bandra market(p.227)
- • Inventory levels of ₹6,341.09 million concentrated in ongoing projects(p.230)
- • 100% dependence on third-party construction contractors(p.251)
- • Limited authorized borrowing capacity relative to project financing needs(p.288)
- • Significant personal guarantees from promoter group on large borrowings(p.269)
- • Small employee base relative to project complexity(p.252)
- • Reliance on few institutional clients for significant projects(p.264)
- • High leverage with significant outstanding borrowings relative to equity(p.315)
- • Substantial interest burden from high debt levels(p.351)
- • Significant outstanding disputed income tax demands creating contingent liability(p.353)
- • Heavy reliance on promoter guarantees for secured borrowings(p.344)
- • Recent income tax search and seizure operation creating uncertainty(p.353)
- • High debt-to-equity ratio indicating significant leverage(p.393)
- • Multiple tax disputes pending with income tax authorities(p.365)
- • Weak debt service coverage ratio indicating repayment stress(p.360)
- • Dependence on single market and geographic concentration risk(p.394)
- • 100% dependence on third-party contractors for construction(p.386)
- • Negative net worth in certain subsidiaries(p.366)
- • High dependence on finance costs relative to revenue(p.419)
- • Significant litigation exposure affecting key properties and operations(p.431)
- • Multiple high-value consumer complaints against subsidiaries(p.432)
- • Outstanding disputed tax liabilities representing significant portion of net worth(p.426)
- • Significant material litigations against subsidiaries with substantial financial exposure(p.433)
Opportunities
- • India's urbanization projected to reach 50% by 2046 driving housing demand(p.25)
- • Expansion into Bandra sub-market with new residential projects(p.24)
- • 16 upcoming projects with 744,149 square feet of estimated carpet area(p.24)
- • Government incentives to promote affordable housing construction(p.57)
- • Projected 8 Indian cities with 10+ million population by 2035 creating unmet housing demand(p.25)
- • Acquisition of strategically located land parcels in Mumbai Metropolitan Region(p.143)
- • Rising Indian household income with 100 million households expected to be added to mid-income category by 2030(p.166)
- • Increasing urbanization with 50% of India's population expected to be urban by 2046(p.167)
- • Demographic dividend with India's demographic dividend period expected to last until 2055(p.167)
- • Recovery of employment to pre-COVID levels supporting housing demand(p.168)
- • Evaluation of land in premium Bandra (west) location for luxury segment(p.143)
- • Consolidation of weak developers creating market share opportunities for branded players(p.214)
- • Significant demand for Value Luxury 1BHK and 2BHK segments with strong absorption(p.235)
- • Expansion through asset-light development model reducing capital deployment(p.234)
- • 19,642 cessed properties in island city of Mumbai available for redevelopment(p.227)
- • Strong absorption growth in MMR with 3.65 Lakh units in 2022 vs 2.37 Lakh in 2021(p.176)
- • Emerging commercial office opportunity through boutique strata sale model(p.228)
- • Redevelopment of co-operative housing societies market(p.250)
- • Expansion into value luxury segment(p.265)
- • Acquisition of additional land parcels for development(p.265)
- • Increased floor space index enabling larger developable areas(p.257)
- • Regulatory framework improvements reducing approval burden(p.257)
- • Segment diversification beyond residential into commercial and built-to-suit projects(p.264)
- • Multiple ongoing real estate development projects in prime Mumbai locations(p.345)
- • Strong pipeline of projects with significant saleable area under development(p.345)
- • Access to multiple financing sources through banks and non-banking financial institutions(p.345)
- • Preparation for public equity capital raise through IPO(p.321)
- • Large pool of redevelopable cessed properties in target market(p.389)
- • Expansion into emerging micro-markets with land reserves(p.390)
- • Growing demand for value luxury segment products(p.389)
- • Entry into boutique commercial office spaces market(p.389)
- • Expansion into Bandra sub-market representing new geographic growth(p.385)
- • Revenue growth from new luxury segment projects(p.420)
- • Expansion through multiple ongoing and upcoming projects(p.442)
- • Profit margin expansion demonstrated in recent fiscal performance(p.421)
Threats
- • Real estate market performance heavily dependent on South-Central Mumbai economic conditions(p.37)
- • Title uncertainty and potential unregistered encumbrances on acquired land(p.39)
- • Project completion delays and penalties to customers(p.40)
- • Intense competition from larger developers with greater resources(p.50)
- • Heavy dependence on real estate financing availability and terms(p.55)
- • Regulatory compliance risks including RERA and changing land use regulations(p.56)
- • Seasonality impacts with construction delays during monsoons(p.48)
- • Real estate market cyclicality affecting property values(p.64)
- • Long project gestation periods with cost overrun risks(p.64)
- • Construction material price volatility and supply risks(p.74)
- • Regulatory changes affecting redevelopment projects(p.91)
- • Indian economic slowdown risks and inflation(p.95)
- • High borrowing costs with loans bearing interest rates up to 20.5% XIRR(p.137)
- • Regulatory changes in RERA and real estate sector affecting business models(p.143)
- • Real estate market cyclicality and sensitivity to macroeconomic conditions(p.164)
- • Concentration of projects in South Central Mumbai with limited geographic diversification(p.143)
- • Reserve Bank policy rate increases impacting borrowing costs and real estate demand(p.164)
- • Rising home loan rates reducing affordability and buyer demand(p.174)
- • Cyclical real estate market sensitivity and potential economic slowdown impact(p.216)
- • Regulatory complexities and RERA compliance requirements increasing compliance costs(p.214)
- • Increasing property prices reducing affordability despite historical improvements(p.174)
- • Tenant settlement and regulatory approval delays impacting project execution timelines(p.224)
- • Competition from both organized and unorganized developers(p.252)
- • Price volatility driven by external market forces beyond company control(p.252)
- • Dependence on third-party contractors with risk of performance failure(p.251)
- • Material and labor cost inflation and supply disruptions(p.266)
- • Complex and evolving regulatory approval framework(p.250)
- • Tenant consent requirements for cooperative housing redevelopment(p.250)
- • Occupational health and safety hazards at construction sites(p.253)
- • Dependence on real estate market cycles and Mumbai property market volatility(p.321)
- • Regulatory and tax compliance uncertainties in real estate sector(p.353)
- • Customer concentration risk with significant receivables aging(p.340)
- • Regulatory and litigation risks from tenant/occupancy disputes on redevelopment projects(p.353)
- • Interest rate volatility affecting cost of debt servicing(p.344)
- • Highly regulated real estate sector with approval delays and compliance burden(p.394)
- • Volatility in construction material costs affecting project margins(p.393)
- • Interest rate sensitivity affecting customer financing and demand(p.393)
- • Significant competitive pressure from larger developers(p.395)
- • Risk of project delays and schedule disruptions affecting revenue realization(p.393)
- • Scarcity of suitable land parcels limiting future growth potential(p.395)
- • Regulatory approvals required for ongoing and upcoming projects(p.442)
- • Monsoon-related operational disruptions(p.428)
- • Exposure to credit risk from installment-based sales model(p.427)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajan Meenathakonil Thomas | Promoter | 82.05% | — |
| Sujatha R. Thomas | Promoter Group | 11.66% | — |
| Rahul Rajan Jesu Thomas | Promoter Group | 1.18% | — |
| Elizabeth Lavanya Rajan Thomas | Promoter Group | 0.23% | — |
| Margarette Shwetha Thomas | Promoter Group | 0.37% | — |
| Accord Estates Private Limited | Promoter Group | 4.51% | — |
| Rajan Meenathakonil Thomas | Promoter | — | — |
| Rajan Meenathakonil Thomas | Promoter | 82.05% | — |
| Sujatha R. Thomas | Promoter Group | 11.66% | — |
| Rahul Rajan Jesu Thomas | Promoter Group | 1.18% | — |
| Accord Estates Private Limited | Promoter Group | 4.51% | — |
| Rajan Meenathakonil Thomas | Promoter/Chairperson and Managing Director | — | — |
| Rajan Meenathakonil Thomas | Promoter | 82.05% | — |
| Rajan Meenathakonil Thomas | Promoter | 82.05% | — |
| Rajan Thomas | Promoter | 92.65% | — |
| Sujatha Thomas | Promoter | 11.44% | — |
| Rahul Thomas | Promoter | 1.13% | — |
Leadership
Rajan Meenathakonil Thomas · Promoter
Shreepal Shah · Chief Financial Officer
Shivil Kapoor · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Suraj Estate Developers IPO FAQs
What is the lot size of Suraj Estate Developers IPO?
The minimum lot size of Suraj Estate Developers IPO is 41 shares. One lot costs ₹14,760 at the cut-off price.
When does Suraj Estate Developers IPO open and close?
Suraj Estate Developers IPO opened for subscription on 18 Dec 2023 and closed on 20 Dec 2023.
What is the listing date of Suraj Estate Developers IPO?
Suraj Estate Developers IPO listed on 26 Dec 2023.