Suraj Estate Developers, a real estate developer specializing in the South Central Mumbai market, has successfully secured ~ ₹343 crores via preferential allotment of equity shares amounting to ~₹243 crores and an additional sum of ~₹100 crores via the issue of convertible share warrants.
The funds will be utilized for land acquisitions, working capital, general corporate purposes, and issue related expenses. A group of high-net-worth individuals, asset management funds and family offices participated in the successful fundraising round.
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 ₹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 ₹99,75,00,000.
The company has received 25% of the issue price for the warrants (₹187.50 per warrant), totalling to ₹24,93,75,000. Warrant holders are entitled to apply for the remaining 75% of the issue price (₹562.50 per warrant) within 18 months from the date of warrant issuance.
Post issuance of equity shares and convertible share warrants, the Promoter & Promoter Group holding will be diluted from 74.95% as of 30th September 2024 to 67.71% on a fully diluted basis.
Rahul Rajan Jesu Thomas, Whole Time Director, at Suraj Estate Developers said, “We are delighted by the strong investor support for this significant capital raise. The proceeds will enable us to accelerate our growth plans and strengthen our market position. We are confident that this will create long-term value for our shareholders.”
Rajan Meenathakonil Thomas, Chairperson and Managing Director at Suraj Estate Developers said, “This timely fundraise 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 is currently developing 13 ongoing projects with 20.34 lakh square feet of developable area, including 6.1 lakh square feet of saleable RERA carpet area, and has a portfolio of 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 meters situated at Bandra (W) and Santacruz (East).
