
Suraj Property Builders’ Rs 400 crore public subject was a completely recent subject of 1.11 crore shares.
Realty firm Suraj Property Builders is more likely to stage a lukewarm debut on the exchanges on December 26. Information from the gray market recommend marginal itemizing positive aspects of round 7 p.c on the higher finish of the value band of Rs 340-360 apiece.
The anticipation of minor itemizing positive aspects is aligned with the respectable curiosity proven by buyers in the corporate’s Rs 400 crore public subject. Suraj Property Builders’ IPO was subscribed 15.65 instances as buyers positioned bids for 12.88 crore shares in opposition to the provide dimension of 82.35 lakh.
Certified institutional consumers (QIBs) showcased most curiosity as they bid 24.31 instances the reserved portion. The quota allotted for retail buyers was subscribed 9.30 instances whereas excessive net-worth people (HNIs) picked 18.9 instances their assigned portion.
“We count on Suraj Property Builders Ltd. IPO to open at a premium of round 6 p.c to the issuance worth of Rs 360 per share. We stay optimistic on the difficulty and suggest buyers who’ve obtained allotment to carry shares from a medium to long run perspective,” stated Prathamesh Masdekar, Analysis Analyst, StoxBox.
Geojit Monetary Companies additionally stays optimistic on the corporate because it feels its constant progress in each topline and bottomline, wholesome return ratios, asset-light enterprise mannequin, redevelopment alternatives and promising trade outlook present it with sturdy progress prospects.
“The corporate additionally has a monitor file of sustained consolidated income from operations, rising at a CAGR (Compounded Annual Development Charge) of 12.9 p.c in the course of the FY21-23 interval. Their sturdy presence within the South-Central Mumbai area has generated vital model recall in sub-markets and substantial gross sales referrals from current clients,” highlighted Masdekar.
In the meantime, the corporate, on the higher finish of its worth band can also be valued at a P/BV of three.3x its anticipated FY24 annualised income, which in line with Geojit Monetary seems to be pretty priced.
Additionally Learn | Suraj Property IPO: Must you subscribe to Rs 400-crore subject?
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The true property development firm specialises within the redevelopment of tenanted properties in Mumbai, with a major operational focus on the South-Central area, masking Mahim, Matunga, Dadar, Prabhadevi, and Parel. Within the final 37 years, Suraj Property Builders has efficiently accomplished 42 tasks, encompassing each residential and industrial developments, with 97.62 p.c of these being redevelopment tasks.
The true property developer plans to make use of the proceeds from the IPO for repaying money owed amounting to Rs 285 crore, whereas one other Rs 35 crore can be utilised for the acquisition of land or land improvement rights within the Mumbai Metropolitan Area. The remaining funds from the difficulty can be put aside for normal company functions.
Among the marquee institutional names that obtained allotment within the anchor e-book are SBI Basic Insurance coverage Firm, Tata Housing Alternatives Fund, Aditya Birla Solar Life AMC, LC Pharos Multi-Technique Fund VCC, ITI Flexi Cap Fund, and Meru Funding Fund PCC-Cell 1.
BNP Paribas Monetary Markets, Societe Generale-ODI, Quantum-State Funding Fund, and IEGFL-Multi Alternative additionally participated within the anchor e-book.
As for the financials, the actual property developer recorded a 21 p.c on-year progress in web revenue at Rs 32.06 crore in FY23 with a income of Rs 305.7 crore. For the June quarter of FY24, its web revenue stood at Rs 14.53 crore on a income of Rs 102.41 crore.
Additionally Learn | Suraj Property Builders IPO subscribed 15.65 instances, retail portion booked 9.30 instances on remaining day
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