Suraj Estate Developers has raised INR 343 crore through a preferential allotment of equity shares (INR 243 crore) and convertible share warrants (INR 100 crore). The funds will support land acquisitions, working capital, and corporate expenses. The company issued 21,05,467 equity shares at INR 714 per share, increasing its paid-up capital to INR 23.88 crore. Additionally, 13,30,000 convertible warrants were issued at INR 750 per warrant, with 25% paid upfront. The promoter group's holding will dilute from 74.95% to 67.71%. This fundraising strengthens Suraj Estate's operational capacity and positions it for growth in the residential and commercial real estate segments.
Suraj Estate Developers has successfully raised INR 343 crore through a preferential allotment of equity shares, which accounted for INR 243 crore, along with an additional INR 100 crore from the issuance of convertible share warrants. The funds are intended for various purposes, including land acquisitions, working capital, general corporate needs, and expenses related to the issuance.
Earlier this week, the members of the preferential issue committee of the board of directors approved the allotment of 21,05,467 fully paid-up equity shares with a face value of INR 5 each. The shares were issued at a price of INR 714, which includes a premium of INR 709, to allottees from the non-promoter group, raising a total of approximately INR 243.64 crore.
Following the allotment of the aforementioned shares, the paid-up capital of the company has increased from INR 22,83,39,605, which represented 4,56,67,921 equity shares with a face value of INR 5 each, to INR 23,88,66,940, comprising 4,77,73,388 equity shares, also with a face value of INR 5 each.
Additionally, the company's board of directors has approved the allotment of 13,30,000 fully convertible warrants at an issue price of INR 750 per warrant, amounting to a total value of INR 99.75 crore. The company has received 25% of the issue price for the warrants, which is INR 187.50 per warrant, totalling INR 24.93 crore. Warrant holders will have the right to apply for the remaining 75% of the issue price, set at INR 562.50 per warrant, within 18 months from the date of warrant issuance. Following the issuance of equity shares and convertible share warrants, the promoter and promoter group's holding will be diluted from 74.95% as of earlier this month to 67.71% on a fully diluted basis.
Suraj Estate Developers' successful fundraising initiative marks a significant step towards enhancing its operational capacity and market position in the real estate sector. By strategically utilizing the raised funds for growth and diversification, the company aims to capture emerging opportunities while delivering value to stakeholders. The dilution of promoter holdings reflects the company's commitment to expanding its shareholder base and fostering sustainable growth in both residential and commercial segments.
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