Suraj Estate Developers Completes INR 343 Cr Capital Raise for Strategic Expansion The raised funds will be deployed across several key areas, including land acquisitions, working capital, general corporate purposes, and issue-related expenses.
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Suraj Estate Developers Limited (SEDL), a prominent real estate developer focused on the South Central Mumbai market, has successfully raised approximately INR 343 crore through a preferential allotment of equity shares and convertible share warrants.
The capital raise includes INR 243 crore from the issuance of equity shares and INR 100 crore from the issuance of fully convertible warrants. This strategic fundraising initiative garnered participation from high-net-worth individuals, asset management funds, and family offices, reflecting strong investor confidence in SEDL's growth prospects.
The funds will be deployed across several key areas, including land acquisitions, working capital, general corporate purposes, and issue-related expenses.
Rajan Meenathakonil Thomas, Chairperson and Managing Director of Suraj Estate Developers, said, "This timely fundraising will provide us with the growth capital to expand our operations and diversify our product offerings. We will strategically utilise these funds to strengthen our position in the residential and commercial real estate segments, capture new opportunities, and deliver sustainable value to our stakeholders."
In the equity share allotment, SEDL issued 34,12,277 equity shares at an issue price of INR 714 per share, raising a total of INR 243.63 crores. Furthermore, the board of directors approved the allotment of 13,30,000 fully convertible warrants at an issue price of INR 750 per warrant, amounting to INR 99.75 crores. SEDL has already received 25% of the warrant issue price (INR 24.93 crores), with the remaining 75% to be paid within 18 months.
Following the allotment of equity shares and warrants, the promoter and promoter group's holding will be diluted from 74.95% as of September 30, 2024, to 67.71% on a fully diluted basis.
The company is currently developing 13 ongoing projects spanning 20.34 lakh square feet of developable area, including 6.1 lakh square feet of saleable RERA carpet area. SEDL also claims to have a robust pipeline of 18 upcoming projects with an estimated carpet area of 9.01 lakh square feet, and land reserves aggregating 10,359.77 square meters in Bandra (W) and Santacruz (E).
Rahul Thomas, Executive Director at Suraj Estate Developers, highlighted, "We are delighted by the strong investor support 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 Limited, active in Mumbai's real estate since 1986, focuses on value luxury and commercial segments in South-Central Mumbai. Their expertise lies in redeveloping tenanted properties across Mahim, Dadar, Prabhadevi, and Parel. The company is now expanding into residential projects in Bandra.
