Shares of Suraj Estate Developers Ltd. rose by 2% to touch a day’s high of Rs 847 on 20th August after the company informed the exchanges on Monday that the board had approved raising up to Rs 500 crore through the issue of preferential shares to eligible shareholders and via warrants convertible into equity shares.

The company plans to issue 56.05 lakh equity shares with a face value of Rs 5 each to stockholders at an issue price of Rs 714, amounting to Rs 400.24 crore.

The issue price for these preferential shares is set at a 12.8% discount compared to today’s closing price of the company’s shares.

Vanaja Sundar Iyer, who holds a 1.02% stake in Suraj Estates through Si Investments and Broking Pvt. Ltd., will receive additional shares on a preferential basis.

Kewal Kiran Clothing, a listed entity with no prior stake, and broking firm Prabhudas Lilladher will also be issued shares as part of the preferential issue.

The company will issue 13.3 lakh convertible warrants to Ramesh Sawalram Saraogi at Rs 750 per warrant, an 8.4% discount to Monday’s closing price, totalling Rs 99 crore. Saraogi’s Navratri Share Trading Pvt. Ltd. holds a 2.03% stake in the company as of the June quarter.

Every warrant is convertible into one equity share within 18 months from the allotment date.

Suraj Estate was one of the last IPOs of the previous year and had an issue price of Rs 360 per share. Since the listing, the stock has more than doubled in value.

In 2023, the stock surged 150% despite briefly dropping below its IPO price to an all-time low of Rs 255.

At 10:10 AM, the shares of Suraj Estate were trading 1.36% higher at Rs 829 on NSE.

Feeling overwhelmed by the markets? Let Unicorn Signals be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!