Suratwwala Business SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Aug 2020 – 05 Aug 2020
- Listing date
- 13 Aug 2020
- Face value
- ₹10 per share
- Issue price
- ₹15 per share
- Lot size
- 8,000 shares
- Total issue size
- ₹6.90 Cr
- Market cap at offer price
- ₹26.01 Cr
- Promoter holding
- 99.92% → 73.42% pre-issue → post-issue
- ISIN
- INB05ST01010
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- S. No. 4/38, Sumangal, First Floor, Sahakar Colony behind SBI, Off Karve Road, Erandwane, 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 |
|---|---|---|---|
| Market maker | 2,40,000 | — | — |
Application size
Minimum 8,000 shares per lot, in multiples, at ₹15
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 8,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 16,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 64,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 72,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹26.01 Cr |
About Suratwwala Business SME
Suratwwala Business Group Limited (formerly Suratwala Housing Private Limited) was incorporated on January 31, 2008 in Pune, Maharashtra, renamed Suratwwala Business Group Private Limited in May 2019, and converted into a public limited company in November 2019. It is a real estate developer focused on residential and commercial projects in the Pune district. Its completed projects are the residential project 'Suratwwala Sweet 16' at Baner (16 one-BHK apartments, completed June 2010) and the commercial project 'Suratwwala Mark Plazzo - Phase I' at Hinjawadi (nine floors with 95 offices, 5 multipurpose showrooms and a rooftop restaurant, completed July 2016). It is currently developing 'Mark Plazzo - Phase II' (proposed completion 2021) and has an upcoming resort-living villa project 'O2 - The Oxygen Spring' at Mulshi (proposed completion 2024). The company makes money primarily by developing and selling residential and commercial units - recognizing revenue under the percentage-of-completion method, receiving a booking advance at unit booking and the balance through construction-milestone-linked payments - supplemented by renting out vacant space, hoardings/banners and mobile-tower space, and charging maintenance fees to unit owners (currently at Mark Plazzo Phase I). In FY2020 it reported total revenue of Rs. 1088.35 Lakhs and profit after tax of Rs. 32.46 Lakhs.
Company Analysis
from RHPSuratwwala Business Group Limited is a Pune-based real estate development company that develops and sells residential and commercial projects, and also earns rental and maintenance income from its developments.
Suratwwala Business Group Limited (formerly Suratwala Housing Private Limited) was incorporated on January 31, 2008 in Pune, Maharashtra, renamed Suratwwala Business Group Private Limited in May 2019, and converted into a public limited company in November 2019. It is a real estate developer focused on residential and commercial projects in the Pune district. Its completed projects are the residential project 'Suratwwala Sweet 16' at Baner (16 one-BHK apartments, completed June 2010) and the commercial project 'Suratwwala Mark Plazzo - Phase I' at Hinjawadi (nine floors with 95 offices, 5 multipurpose showrooms and a rooftop restaurant, completed July 2016). It is currently developing 'Mark Plazzo - Phase II' (proposed completion 2021) and has an upcoming resort-living villa project 'O2 - The Oxygen Spring' at Mulshi (proposed completion 2024). The company makes money primarily by developing and selling residential and commercial units - recognizing revenue under the percentage-of-completion method, receiving a booking advance at unit booking and the balance through construction-milestone-linked payments - supplemented by renting out vacant space, hoardings/banners and mobile-tower space, and charging maintenance fees to unit owners (currently at Mark Plazzo Phase I). In FY2020 it reported total revenue of Rs. 1088.35 Lakhs and profit after tax of Rs. 32.46 Lakhs.
Objects of the Issue
- To meet working capital requirements Rs. 560.00 Lakhs p.72
- General Corporate Purpose Rs. 60.50 Lakhs p.73
- To meet the Issue Expenses Rs. 69.50 Lakhs p.73
Issue Structure
- Total Issue
- 46,00,000 Equity Shares of face value Rs. 10 each at an issue price of Rs. 15.00 per Equity Share, aggregating up to Rs. 690.00 Lakhs (including Market Maker Reservation Portion of 2,40,000 Equity Shares aggregating Rs. 36.00 Lakhs; Net Issue of 43,60,000 Equity Shares aggregating Rs. 654.00 Lakhs)
- Fresh Issue
- 46,00,000 Equity Shares aggregating Rs. 690.00 Lakhs (entire issue is a fresh issue)
- Price Band
- Fixed Price Issue at Rs. 15.00 per Equity Share
- Lot Size
- 8,000 Equity Shares (minimum trading lot size)
- Face Value
- Rs. 10 each
Business Model
Earns revenue primarily from development and sale of residential and commercial real estate (revenue recognized on percentage-of-completion basis, with booking advances at the time of booking and balance payments linked to construction milestones), plus rental income from vacant space, hoardings/banners and mobile towers installed on its buildings, and maintenance service fees charged to owners of units in its developed projects.
Business Segments
SWOT Analysis
- • Developable land identification capabilities and strong execution(p.97)
- • Diversified business model spanning development, renting and maintenance(p.97)
- • Experienced promoters and strong management team(p.98)
- • Strong presence and market/regulatory knowledge in Pune district(p.98)
- • Quality assurance and construction standards(p.98)
- • Award recognition for completed residential project(p.94)
- • Membership of CREDAI Pune Metro industry body(p.92)
- • Entire revenue geographically concentrated in Pune district(p.24)
- • Negative cash flows from operating, investing and financing activities in past years(p.27)
- • Unsecured loans of Rs. 1,334.68 lakhs recallable by lenders at any time(p.31)
- • Funding dependence on HDFC Limited and Aditya Birla Finance Limited(p.33)
- • Outstanding legal proceedings involving Company, Directors and Promoters(p.24)
- • Group entity in identical line of business with no non-compete agreement(p.28)
- • RERA, environmental and fire NOC approvals yet to be applied for the O2-The Oxygen Spring project(p.24)
- • Trademarks used in business not owned/registered; Class 36 application objected(p.30)
- • Urbanization tailwind - urban population projected to grow beyond 600 million by 2031(p.17)
- • Government affordable housing push under PMAY / Housing for All(p.88)
- • RERA expected to drive higher growth and transparency across the real estate value chain(p.88)
- • Strategy to enter affordable housing development(p.96)
- • Geographical expansion beyond Pune with early-mover advantage(p.99)
- • Identification and acquisition of land in prime and strategic locations(p.96)
- • Villa resort development (O2-The Oxygen Spring) appealing to multiple income groups(p.93)
- • Portfolio diversification to build additional, cash-flow-visible income sources(p.96)
- • Cyclical nature of the Indian real estate market causing fluctuations in property values and lease income(p.36)
- • Competition from national and local property developers(p.30)
- • Interest rate fluctuations affecting customer purchasing power and borrowing costs(p.34)
- • Heavily regulated real estate sector with changing laws and legal uncertainties(p.30)
- • RERA non-compliance penalties up to 10% of project cost and/or imprisonment(p.27)
- • Increase in raw material, labour and other input costs / inflation(p.32)
- • Dependence on prevailing economic, political and other conditions in India(p.36)
- • Natural calamities and pandemic outbreaks impacting the economy and business(p.37)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jatin Dhansukhlal Suratwala | Promoter | 52.87% | 38.85% |
| Manoj Dhansukhlal Suratwala | Promoter | 18.12% | 13.31% |
Leadership
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.