On December 26, Suraj Estate Developers will make a lackluster debut on the stock market

 On December 26, Suraj Estate Developers will make a lackluster debut on the stock market

 On December 26, Suraj Estate Developers will make a lackluster debut on the stock market

The initial public offering (IPO) of Suraj Estate Developers received 15.65 times as many bids for 12.88 crore shares as opposed to the 82.35 lakh offer size. Bidding by qualified institutional buyers (QIBs) exceeded the reserved share by 24.31 times, indicating their highest level of interest.

The 1.11 crore shares in Suraj Estate Developers' Rs 400 crore public offering were a totally new issue.

Suraj Estate Developers, a real estate business, is probably going to have a poor opening day on the stock exchange on December 26. Gray market data indicates that at the higher end of the Rs 340–360 price range, there has been a little listing increase of almost 7%.

A minor listing gain is anticipated, which is consistent with the positive response investors gave the company's Rs 400 crore initial public offering. The initial public offering (IPO) of Suraj Estate Developers received 15.65 times as many bids for 12.88 crore shares as opposed to the 82.35 lakh offer size.

Bidding by qualified institutional buyers (QIBs) exceeded the reserved share by 24.31 times, indicating their highest level of interest. Retail investors subscribed 9.30 times the quota, whereas high net worth individuals (HNIs) chose to subscribe 18.9 times their allocation.

"We anticipate that Suraj Estate Developers Limited's initial public offering (IPO) would begin at a premium of around 6% above the Rs 360 issue price per share. According to Prathamesh Masdekar, research analyst at Stocksbox, "We remain bullish on the issue and advise investors looking to hold the shares for the medium to long term perspective."

Geojit Financial Services is still optimistic about the firm, believing it has good growth possibilities due to its steady growth in both top and bottom line, high return ratios, asset-light business model, reinvestment opportunities, and optimistic industry outlook.

Additionally, the business has a history of steady development in consolidated revenue from operations, with a compound annual growth rate (CAGR) of 12.9% from FY 2011 to FY 23. Masdekar said that "their strong presence in the south-central Mumbai zone has generated substantial sales referrals about existing customers and significant consumer recall in the sub-markets."

According to Geojit Financial, the firm is attractively valued, with a P/BV of 3.3x on its expected FY24 annual sales, at the top half of its pricing range.

The real estate construction company's main business concentration is on the south-central area, which includes Mahim, Matunga, Dadar, Prabhadevi, and Parel. It specializes in the renovation of tenant properties in Mumbai. Suraj Estate Developers has successfully completed 42 projects over the last 37 years, including both residential and commercial complexes, with 96.62% of those projects being redevelopments.

The real estate developer intends to utilize the profits from the initial public offering (IPO) to pay off debt totaling Rs 285 crore. An additional Rs 35 crore would be used to purchase property or the right to develop land in the Mumbai metropolitan region. The remainder of the issue's proceeds will be put aside for general business needs.

SBI General Insurance Company, Tata Housing Opportunities Fund, Aditya Birla Sun Life AMC, LC Fraas Multi-Strategy Fund VCC, ITI Flexi Cap Fund, as well as Meru Investment Fund PCC-SAIL are a few of the prestigious institutional names that have been allocated in the anchor book.

Participating in the anchor book were BNP Paribas Financial Markets, Societe Generale-ODI, Quantum-State Investment Fund, as well as IEGFL-Multi Opportunity.

Financially speaking, the real estate developer had a 21% increase in net profit in FY2013, reaching Rs 32.06 crore on sales of Rs 305.7 crore. With sales of Rs 102.41 crore, its net profit for the June quarter of FY24 was Rs 14.53 crore.