In Tuesday’s trading session, the shares of one of the leading real estate players surged 3.6 percent to Rs. 842 on BSE, after the Board of the company approved Rs. 500 crores fundraising through Preferential Issue and warrants convertible into equity shares.
With a market capitalisation of Rs. 3,544.4 crores, the shares of Suraj Estate Developers Limited opened in the green at Rs. 830, up by 2.2 percent, as against its previous closing price of Rs. 812.6.
What’s the News:
According to the latest regulatory filings with the stock exchanges, the Board of Suraj Estate Developers approved raising funds of Rs. 500 crores through the sale of preferential shares to eligible shareholders and warrants convertible into equity shares.
The company will first issue 56.05 lakh equity shares with a face value of Rs. 5 per share to shareholders at an issue price of Rs. 714 apiece, totalling Rs. 400.24 crores.
Further, the company will issue 13.3 lakh fully convertible warrants to Ramesh Sawalram Saraogi at an issue price of Rs. 750 per warrant, aggregating to Rs. 99.75 crores.
Ramesh Saraogi’s Navratri Share Trading Pvt. Ltd. held a 2.03 percent stake in the company as of the June 2024 quarter.
Each warrant awarded will be convertible into an equivalent number of fully paid-up equity shares of face value of Rs. 5 each, within 18 months of the date of allotment of warrants.
Previous News:
On 22nd April, Suraj Estate Developers Limited acquired a freehold plot of land totalling ~1,073.4 square metres, located off Lady Jamshedji Road, Mahim (West), Mumbai, for a total consideration of Rs. 33.1 crores.
This acquisition involved a redevelopment project, including the relocation of 7 tenants/occupants who have vacated their respective premises, leaving the plot clear.
After deducting the Floor Space Index (FSI) required for tenants/occupants rehabilitation and the surplus area designated for MHADA, the remaining carpet area available for sale was estimated to be around 2,787 square meters, with a projected Gross Development Value (GDV) of Rs. 120 crores.
Financials:
Financially, the company experienced a significant increase in its revenue from operations, showing a year-on-year rise of nearly 31.4 percent from Rs. 102 crores in Q1 FY23-24 to Rs. 134 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 14.5 crores to Rs. 30 crores, indicating a growth of about 107 percent YoY.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA grew from Rs. 47 crores in Q1 FY23-24 to Rs. 64.2 crores in Q1 FY24-25, marking a 36.6 percent growth.
Stock performance:
The stock has delivered multibagger returns of nearly 132 percent in the last six months as well as around 142 percent returns year-to-date.
About the company:
Incorporated in 1986, Suraj Estate Developers Limited is primarily engaged in the business of real estate development in India including the development and sale of residential and commercial premises.
The company stand out as one of the market leaders in redevelopment projects in South Central Mumbai (SCM)—Mahim, Matunga, Dadar, Prabhadevi and, Parel—with an upcoming market in Bandra.
Written by Shivani Singh
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