Suraj Estate Developers has successfully raised ₹343 crore through the issuance of equity shares and convertible warrants. The funds are primarily intended for land acquisition and to support the company’s working capital needs.
The fundraising effort involved a preferential allotment of equity shares, amounting to ₹243 crore, along with ₹100 crore through the issuance of convertible share warrants. The real estate developer plans to allocate the capital towards land purchases, general corporate expenses, working capital, and costs associated with the share issuance.
A mix of high-net-worth individuals, asset management firms, and family offices participated in this capital-raising initiative.
Suraj Estate Developers’ Chairperson and Managing Director, Rajan Meenathakonil Thomas, stated that the infusion of funds would provide the company with growth capital. He added that the funds would be strategically deployed to strengthen Suraj Estate’s presence in both the residential and commercial real estate markets. The capital will also enable the company to explore new opportunities and deliver long-term value to stakeholders.
The company issued a total of 34,12,277 equity shares at ₹714 per share, raising ₹243.64 crore. In addition, Suraj Estate Developers’ board approved the allotment of 13,30,000 fully convertible warrants priced at ₹750 each, with a total value of ₹99.75 crore.
As part of the warrant issuance, the company has received 25% of the issue price upfront, amounting to ₹24.94 crore. Warrant holders are expected to pay the remaining 75% within 18 months.
Following this transaction, the promoter group’s stake in the company will decrease from 74.95% as of September 30, 2024, to 67.71% on a fully diluted basis.
Since its establishment, Suraj Estate Developers has completed 42 projects, covering over 1 million square feet in the South-Central Mumbai region. The company currently has 13 ongoing projects, with a developable area of 20.34 lakh square feet, and plans for 18 upcoming projects covering 9.01 lakh square feet. The company also holds land reserves of approximately 10,360 square meters in Bandra (West) and Santacruz (East).
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By Proptechbuzz
By Ravi Kumar