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Mumbai-based realtor Suraj Estate Developers Limited has developed real estate across the residential and commercial sectors in South Central Mumbai region, and has residential portfolio located in the markets of Mahim, Matunga, Dadar, Prabhadevi, and Parel, has fixed the price band at ?340 to ?360 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, December 18, 2023, for subscription and close on Wednesday, December 20, 2023. Investors can bid for a minimum of 41 Equity Shares and in multiples of 41 Equity Shares thereafter.

The Public Issue of face value of ?5 per Equity Share is entirely a fresh issuance of Equity Shares worth Rs 4000 million with no Offer for Sale (OFS) component.

Founded in 1986 by Rajan Meenathakonil Thomas, Suraj Estate Developers focuses primarily on value luxury, luxury segments and commercial segment in South Central Mumbai region and now venturing into residential real estate development in Bandra sub-market. We specialise in the redevelopment of tenanted properties.

With a longstanding presence of over thirty-six years in the real estate market, it has completed forty-two (42) projects with a developed area of more than 1,046,543.20 square feet in the South-Central Mumbai region. In addition to the Completed Projects, it has thirteen (13) Ongoing Projects with a developable area of 20,34,434.40 square feet and saleable carpet area 6,09,928 square feet and sixteen (16) Upcoming Projects with an estimated carpet area of 7,44,149 square feet.

The Company caters to the discerning clientele across the "value luxury" and "luxury" segments, offering a diverse range of properties priced from ?10.00 million to ?130.00 million. It has constructed and sold built-to-suit corporate headquarters to institutional clients, which includes Saraswat Co-operative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar). To cater to the increasing need for independent office buildings in the commercial segment, it is currently proposing a 16 storey commercial building situated in Tulsi Pipe Road, Mahim.

Its customer centric business model focuses on addressing customer requirements in various locations, ticket sizes and configurations.

Positioned for future growth and expansion, the company holds certain strategic land parcels in Bandra (West) and Santacruz (East) for development. As of October 31, 2023, it possesses Land Reserves of 10,359.77 square meters, intending to capitalize on the entire FSI potential of more than index 2.0, subject to marketability and receipt of regulatory clearances. They have land parcels spanning 9,631.35 square meters in Bandra (West), Mumbai, Maharashtra, and 728.42 square meters in Santacruz (East), Mumbai, Maharashtra, showcasing its commitment to strategic real estate investments and future projects.

During the three months’ period ended on June 30, 2023 and Fiscal 2023, 2022 and 2021, the  consolidated EBITDA was Rs 467.32 million, Rs 1,510.03 million, Rs 1,317.33 million and Rs 866.29 million respectively, whereas consolidated EBITDA margin during the three months’ period ended on June 30, 2023 and Fiscal 2023, 2022 and 2021 was 45.64%, 49.39%, 48.30% and 36.10% respectively.

As on October 31, 2023, it has redeveloped houses for more than 1,011 tenants in 42 Completed Projects, free of-cost under regulation 33(7) of the Development Control and Promotion Regulation, 2034 (“DCP Regulations”).

The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.

ITI Capital Limited, and Anand Rathi Advisors Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

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