Mumbai-based real estate player Suraj Estate Developers refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 400 crore through an initial public offering (IPO). The real estate developer had earlier filed DRHP in March 2022.

According to the DRHP, the IPO is a fresh issue of equity shares with a face value of Rs 5 each, worth up to Rs 400 crore.

The company proposes to utilise proceeds to the tune of Rs 285 crore towards payment of the aggregate outstanding borrowings of the Company and its Subsidiaries – Accord Estates Pvt Ltd and Iconic Property Developers Pvt Ltd, another Rs 35 crore will be used for acquiring or developing of land and the rest for general corporate purposes.

Anand Rathi Advisors Ltd and ITI Capital Ltd are the book-running lead managers to the issue being made through the book-building process. Up to 50% of the issue shall be allocated to Qualified Institutional Buyers (QIBs), at least 15% shall be available for allocation to Non-Institutional Bidders, and at least 35% for Retail Individual Bidders.

Founded in 1986 by Rajan Meenathakonil Thomas, the company has been operating and developing residential and commercial properties across the “value luxury” and “luxury” segments throughout South and Central Mumbai. The company had 42 completed projects, 11 ongoing projects and 21 upcoming ones in the region as of May 31, 2023. 

Suraj Estate Developers posted a 20.98% growth in profit to Rs 32.06 crore in the financial year 2023 against Rs 26.50 crore in the previous fiscal. Its revenues during the FY23 rose 12.11% to Rs 305.74 crore from Rs 272.72 crore last year.