Synopsis:
Sunteck Realty jumped sharply after it announced the issuance of 1.18 crore convertible warrants at an issue price of Rs 425 each, aggregating a total issue of Rs 500 crore. Ace Investor Mukul Agarwal is also a part of this round, purchasing around 17.65 warrants
The share of this realty major is in focus after a massive 500 crore fundraise is approved by the board of directors of the company, supported by the issuance of convertible warrants. In this article, we will dive more into the details.
With a market capitalization of Rs 6,752 crore, the shares of Sunteck Realty Ltd made a day high of Rs 472.25 per share, up by 5 percent from its previous day closing price of Rs 449.65 per share. Over the past five years, the stock has delivered a return of 69 percent.
About the allotment
Sunteck Realty, through a stock exchange filing, announced that the company is issuing 1.18 crore convertible warrants at an issue price of Rs 425 each, aggregating a total issue of Rs 500 crore.
According to the proposed allotment details, about 65 percent of the warrants will be taken up by promoters and their associated entities, while the remaining 35 percent will be allocated to non-promoters.
Notably, prominent investor Mukul Mahavir Agrawal is set to receive 17.65 lakh warrants, which really underscores the strong confidence investors have in the company’s growth potential.
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But what are convertible warrants?
Convertible warrants are financial instruments that give investors the right, but not the obligation, to buy company shares at a fixed price within a specific time frame in the future. Companies issue them to raise funds, and when investors convert these warrants into shares, the company gets additional capital, and the investor becomes a shareholder.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 188 crore, registering a 41 percent decline from Rs 316 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 9 percent from Rs 206 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 43 percent to Rs 33 crore in Q1 FY26 as compared to a profit of Rs 23 crore in Q1 FY25. However, on a QoQ basis, it declined by 34 percent from Rs 50 crore.
Sunteck Realty Limited is a prominent real estate company in India, specializing in the development of luxury residential, commercial, retail, and mixed-use properties. They operate under well-known brands like Signature, Signia, Sunteck City, and Sunteck World.
In addition to property development, they also lease out properties and provide a range of related services. Their sales strategy primarily involves working through sales offices, channel partners, wealth managers, institutions, and property exhibitions, with a focus on attracting corporate clients and high-net-worth individuals.
Written by Satyajeet Mukherjee
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