Suraj Estate Developers IPO: Ten major RHP risks to think about before making an investment

 Suraj Estate Developers IPO: Ten major RHP risks to think about before making an investment

Suraj Estate IPO: This Wednesday, December 20, 2023, is the last day that Suraj Estate Developers Limited's initial public offering (IPO) will be available. It began on Monday, December 18. Here are some significant RHP hazards to think about before making an investment:

Suraj Estate IPO: This Wednesday, December 20, 2023, is the last day that Suraj Estate Developers Limited's initial public offering (IPO) will be available. It began on Monday, December 18. This indicates that this week's Suraj Estate IPO subscription periods will be open from Monday through Wednesday.

The property firm has set the Suraj Estate initial public offering (IPO) pricing range at ₹340 to ₹360 per equity share. By issuing additional shares, it hopes to generate ₹400 crore from its debut sale.

1.The COVID-19 pandemic negatively affects Suraj Estate's company, financial condition, results of operations, cash flows, liquidity, and performance. It also may lower demand for its projects in the future. These are the main risk concerns that Suraj Estate identified in the red-herring prospectus (RHP).

2. Its firm, subsidiaries, directors, promoter, and group businesses are involved in a number of ongoing legal procedures, the outcomes of which might negatively affect the company's business, reputation, financial situation, operational performance, and cash flows.

3. Suraj Estates's business and expansion possibilities may be hampered if it is unable to locate and get appropriate property or development rights.

4. Suraj Estate's capacity to carry out its business and activities may be negatively impacted by its debt and the terms and limitations set out in its financing arrangements.

5. The corporation has taken out some unsecured loans that the lenders may revoke at any moment.

6. Any future negative cash flows will have a negative impact on Suraj Estate's cash flow needs, which might have an unfavorable effect on its capacity to run its company and carry out its expansion ambitions, which would then have an effect on its financial situation.

7. Suraj Estate has various contingent liabilities that, should they be fulfilled, might significantly negatively impact the company's operations, finances, and overall business picture.

8. Suraj Estate has not committed to using any portion of the issue's profits, and it is free to invest or utilize them in ways that you may find objectionable.

9. The South-Central Mumbai real estate submarkets' performance and other factors have a significant impact on Suraj Estate's commercial operations. Therefore, the Company is exposed to risks related to natural catastrophes, as well as changes in the economy, regulations, and other aspects of the South Central Mumbai area. These risks have the potential to materially negatively impact the Company's operations, financial condition, and cash flows.

10. Residential project development and renovation are part of Suraj Estate's commercial operations. Therefore, the company's capacity to predict and adapt to the wants and preferences of its customers will determine how successful it is.