LIC Mutual Fund – Flexi Cap Fund Picks Stake in Suraj Estate Developers Ltd.

Suraj Estate Developers Limited is a leading real estate player focused on South Central Mumbai (SCM) market with specialisation in redevelopment. As per bulk deal data available on NSE, LIC Mutual Fund – Flexi Cap Fund, has picked 283,616 shares in Suraj Estate Developers Ltd. on 17 September 24, at an average price of Rs. 758.89.
Recently the company announced that it secured shareholder approval to raise Rs. 500 Crores via Preferential Issue of Equity Shares and Warrants. Shareholders overwhelmingly approved the company’s proposed fundraise of approximately Rs. 500 crores through preferential issue of equity shares and convertible warrants subject to approval of statutory authorities.
The EGM saw shareholders endorse the creation, offer, and issue of fully paid up 56,05,742 Equity shares each for cash at an issue price of Rs. 714 per share aggregating to Rs. 400.25 Cr, on preferential basis to the Proposed Allottees. Additionally, shareholders approved offer and issue of 13,30,000 Fully Convertible Warrants at an issue price of Rs. 750 per warrant, with a right to the warrant holder to apply for and be allotted 1 Equity Share of the Company towards conversion of each warrant within a period of 18 months from the date of allotment of the Warrants to the Proposed Allottee.
Post issuance of equity shares and convertible share warrants, the Promoter & Promoter Group holding will be diluted from 74.95% as of 30th June 2024 to 64.82%.
The proposed issue will bring on board large HNI’s and family offices. Company proposes to utilize the net proceeds for land acquisition, working capital requirement, general corporate purposes and issue related expenses.
The company is currently developing 13 projects with 20.34 lakh square feet of developable area, including 6.1 lakh square feet of saleable RERA carpet area, and has 18 upcoming projects with an estimated carpet area of 9.01 lakh square feet.
Commenting on this Mr. Rahul Rajan Jesu Thomas, Whole Time Director, at Suraj Estate Developers said, “We are delighted with the overwhelming support from our shareholders for this significant capital raise. The proceeds will enable us to accelerate our growth plans and strengthen our market position. We are confident that this will create long-term value for our shareholders.”
Suraj Estate Developers is a leading real estate developer with a strong track record of delivering high quality projects. The company’s focus on innovation, sustainability, and customer satisfaction has earned it a reputation as a trusted name in the industry.
Suraj Estate Developers Limited has been involved in the real estate business since 1986 and they develop real estate across the residential and commercial sectors in South Central Mumbai region. The company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market where they have established their presence. The company is focused primarily on value luxury, luxury and commercial segments. Suraj Estate is now venturing into residential real estate development in Bandra sub-market. The focus area of operation is the South-Central region in Mumbai mainly consisting of Mahim, Matunga, Dadar, Prabhadevi and Parel, as their expertise lies is in the redevelopment of tenanted properties. Since most of the land parcels in the South-Central Mumbai market are redevelopment projects, company’s core competence lies in tenant settlement which is a key element for unlocking value of such land parcels. Suraj Estate Developers identify properties having cessed/ non-cessed structures with existing tenants and tie up with the landlords of such tenanted properties by entering into development agreement or on outright purchase basis through conveyance deed.
Since incorporation, Suraj Estate Developers have completed 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, the company has 13 ongoing projects with a developable area of 20.34 lakh square feet and saleable RERA carpet area 6.1 lakh square feet and 18 upcoming Projects with an estimated carpet area of ~9.01 lakh square feet.