LIC Mutual Fund Buys 2,83,616 Shares of Multibagger Real Estate Developer—Watch Out!
Shares of Suraj Estate Developers have gained 136.54 per cent on a YTD basis, resulting in multibagger returns for its shareholders.
Suraj Estate Developers Limited is a real estate player specializing in the South-Central Mumbai (SCM) market with a focus on redevelopment projects. According to bulk deal data available on NSE, LIC Mutual Fund – Flexi Cap Fund acquired 2,83,616 shares of Suraj Estate Developers Ltd. on September 17, 2024, at an average price of Rs. 758.89.
Recently, the company announced that it had secured shareholder approval to raise Rs. 500 crore via a preferential issue of equity shares and warrants. Shareholders overwhelmingly supported the proposed fundraise, which includes issuing approximately Rs. 500 crore through preferential equity shares and convertible warrants, subject to statutory approvals.
During the EGM, shareholders endorsed the creation, offer, and issue of 56,05,742 fully paid-up equity shares at an issue price of Rs. 714 per share, amounting to Rs. 400.25 crore, on a preferential basis to the proposed allottees. Additionally, they approved the offer and issue of 13,30,000 fully convertible warrants at an issue price of Rs. 750 per warrant, with each warrant giving the holder the right to apply for and be allotted one equity share within 18 months from the date of warrant allotment. Following the issuance of equity shares and convertible warrants, the promoter and promoter group holding will be diluted from 74.95 per cent as of June 30, 2024, to 64.82 per cent.
The proposed issue aims to attract large HNIs and family offices. The company plans to utilize the net proceeds for land acquisition, working capital requirements, general corporate purposes, and issue-related expenses.
Suraj Estate Developers 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 the development, 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 well-regarded 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.
Founded in 1986, Suraj Estate Developers has been active in the real estate sector, developing residential and commercial properties across the South-Central Mumbai region. The company's residential portfolio is located in the sub-markets of Mahim, Dadar, Prabhadevi, and Parel, where it has established a strong presence. The company primarily targets value luxury, luxury, and commercial segments and is now expanding into residential development in the Bandra sub-market. Suraj Estate specializes in redeveloping tenanted properties, a core competence that helps unlock the value of land parcels in South Central Mumbai.
Since its inception, Suraj Estate Developers has completed 42 projects, developing more than 1,046,543.20 square feet in South Central Mumbai. The company currently has 13 ongoing projects with a developable area of 20.34 lakh square feet and 6.1 lakh square feet of saleable RERA carpet area, along with 18 upcoming projects estimated at approximately 9.01 lakh square feet of carpet area.
Shares of Suraj Estate Developers have gained 136.54 per cent on a YTD basis, resulting in multibagger returns for its shareholders.
Disclaimer: The article is for informational purposes only and not investment advice.