Realty firm Suraj Estate Developers has raised ₹343 crore by issuing shares and warrants. It will use the net proceeds to finance land purchases and to bail out its working capital requirements through the issuance of shares and warrants.
The company had raised the sum through preferential allotment of equity shares amounting to about₹243 crore, besides convertible share warrants raising₹100 crore. As per the company, it would use the proceeds for land acquisition and working capital, general corporate purposes, as well as any other incidental expenditure.
The round of funding was led by a Consortium of High Net Worth Individuals, Asset Management Funds, and Family Offices. Rajan Meenathakonil Thomas, Chairperson and Managing Director, Suraj Estate Developers, said, “This will help to provide us with growth capital to extend our operations and diversify our product suite. Strategically applied, the funds would further enhance our footprint in the residential and commercial real estate segments, seize emerging opportunities, and create long-term value for our stakeholders.”
The company had issued 3,412,277 equity shares of₹5 each at a price of₹714 per share, aggregating to₹243,63,65,778. The board of directors has approved the allotment of 1,330,000 fully convertible warrants at an issue price of ₹750 per warrant aggregating to ₹99,75,00,000. The company had received 25% of the issue price for the warrants amounting to ₹24,93,75,000. Warrant holders will be entitled to come in for the balance 75% issue price on or before 18 months from the date of issuance of warrants.
Post issue of equity shares and convertible warrants, the promoter/promoter group holding shall be diluted from the existing 74.95% as of 30 September 2024 to 67.71% on a fully diluted basis.
Since incorporation, Suraj Estate Developers has successfully completed 42 projects, with a developed area of more than 1,046,543.20 square feet in south-central Mumbai. The company now works on 13 under-construction projects with a developable area of 20.34 lakh square feet along with a saleable RERA carpet area of 6.1 lakh square feet and is working on 18 upcoming projects scheduled to be achieved with an estimated carpet area of 9.01 lakh square feet. Land reserves of 10,359.77 square meters are in the possession of Suraj Estate Developers in Bandra (W) and Santacruz (East).
