Suraj Estate Developers Secures Rs 343 Cr Via Preferential Issue of Equity Shares, Share Warrants

Suraj Estate Developers (SED), a real estate developer specialising in the South Central Mumbai market, successfully secured Rs 343 crore via preferential allotment of equity shares amounting to Rs 243 crore and an additional sum of Rs 100 crore via the issue of convertible share warrants.

The funds will be utilised 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.

"This timely fundraising will provide us with the growth capital to expand our operations and diversify our product offerings. We will strategically utilise these funds to strengthen our position in the residential and commercial real estate segments, capture new opportunities, and deliver sustainable value to our stakeholders," said Rajan Meenathakonil Thomas, Chairperson and Managing Director, SED.

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 Rs. 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 Rs 99,75,00,000.

The company has received 25 per cent of the issue price for the warrants, totalling to Rs 24,93,75,000. Warrant holders are entitled to apply for the remaining 75 per cent of the issue price within 18 months from the date of warrant issuance.

Post issuance of equity shares and convertible share warrants, the Promoter and Promoter Group holding will be diluted from 74.95 per cent as of 30 September 2024 to 67.71 per cent on a fully diluted basis.

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 metres situated at Bandra (W) and Santacruz (East).

“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,” said Rahul Thomas, Executive Director, SED.