Suraj Estate Developers Limited

Suraj Estate Developers Limited -IPO DETAILS 

Company Overview 

The company specializes in real estate development within both residential and commercial sectors, currently maintaining a residential portfolio in Mahim, Dadar, Prabhadevi, and Parel markets. Proficient in the redevelopment of tenanted properties under Regulation 33(7) of the Development Control and Promotion Regulations ("DCPR") in the Mumbai region, the company exclusively relies on third-party contractors for its construction services, refraining from providing such services internally. 

Since its inception, the company has successfully completed 42 projects, encompassing a developed area exceeding 1,046,543.20 square feet in the South-Central Mumbai region. Presently, the company is actively engaged in 13 ongoing projects, featuring a developable area of 2,034,434.40 square feet, a saleable RERA carpet area of 609,928 square feet. Additionally, it has 16 upcoming projects on the horizon, anticipated to yield an estimated carpet area of 744,149 square feet. 

 Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. The funds will be used for settling or prepaying the total outstanding borrowings of the Company and its Subsidiaries, including Accord Estates Private Limited, Iconic Property Developers Private Limited, and Skyline Realty Private Limited. 

2. Additionally, the funds will be allocated for acquiring land or obtaining land development rights 

3. For general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. With an extensive presence in South Central Mumbai, the company has firmly established itself in both the Value Luxury Segment and Luxury Segment. Boasting 36 years of experience, the company has cultivated in-house expertise in redevelopment, fostering trust among customers. 

2. The company leverages its strong brand by strategically selling a substantial portion of units shortly after project launches and prior to obtaining occupation certificates. This approach minimizes reliance on construction finance, optimizing returns during the construction phase. 

3. Diversifying its portfolio, the company engages in residential developments across South Central Mumbai, catering to various economic and demographic segments. This strategic diversification mitigates the risk associated with dependence on a specific market segment, enhancing overall resilience. 

4. Notably, the company's commitment to providing free housing to occupants during redevelopment projects has solidified its position as the preferred developer in the region. This unique offering contributes to the company's strong reputation and customer preference. 

Cons 

1. The company faces various risks stemming from economic, legislative, and other factors, along with the vulnerability to natural calamities in the South-Central Mumbai region and the broader performance of the real estate sector. 

2. Additionally, heightened competition in the company's limited operational area may lead to escalated land costs. Given that these cost increases cannot be transferred to customers, there is a potential adverse impact on the business. 

3. Furthermore, agreements with customers for both ongoing and upcoming projects may involve interest payments due to construction delays or project cancellations. The occurrence of such delays or cancellations, leading to financial obligations, could have a detrimental effect on the company's business. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”