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Suraj Estate Developers has approved the issuance of non-convertible debentures (NCDs) worth INR 165 crore through a private placement, adding another debt-raising route for the Mumbai-based real estate developer. The NCDs are proposed to be senior, secured and unrated. The move comes as the company continues to expand its project pipeline in South-Central Mumbai, where it focuses on residential and commercial development, including redevelopment projects. The company had also raised funds through equity and debt instruments in the past to support project development, acquisitions, working capital and business expansion.
Suraj Estate Developers Ltd has approved the issuance of NCDs totalling INR 165 crore through a private placement. The approval followed a board-level consideration of the fundraising proposal, according to the company disclosure reported by Reuters.
The proposed NCDs are senior, secured and unrated securities. The latest fundraising will provide the company with an additional debt-financing route as it works on its existing projects and builds its development pipeline.
The fundraising plan comes at a time when Suraj Estate Developers has been reporting higher sales and expanding its project portfolio. During FY26, the company recorded sales value of about INR 615 crore, up 23% from INR 501 crore in the previous financial year. Sales area increased 42% to 1,31,167 square feet, while collections rose 9% to INR 421 crore.
The company reported total income of INR 561 crore for FY26, compared with INR 553 crore a year earlier. EBITDA increased 8% to INR 223 crore, while profit after tax stood at INR 90 crore, compared with INR 100 crore in the previous year. The company attributed the decline in profit largely to higher finance costs linked to recent acquisitions and ongoing business development activities.
Suraj Estate Developers has been focusing primarily on South-Central Mumbai and has a strong presence in redevelopment projects. During FY26, it launched Suraj One Business Bay, Suraj Parkview 1 and Suraj Aureva, with a combined gross development value of around INR 1,600 crore across residential and commercial segments.
The company also acquired a land parcel on Sayani Road in Prabhadevi, with an estimated gross development value potential of around INR 200 crore. The acquisition added to its upcoming project pipeline in South-Central Mumbai.
Suraj Estate Developers has used debt and equity fundraising in the past to support its expansion. In 2024, its borrowing committee approved the allotment of INR 60 crore of unlisted, secured NCDs on a private placement basis to ICICI Ventures Funds Management Company. The company had initially considered raising up to INR 70 crore through NCDs.
The developer also undertook a preferential issue of equity shares and convertible warrants in 2024. The proposed issue size was INR 500 crore, although the final proceeds were lower because of undersubscription of the equity share portion. The company's disclosures indicated that funds were intended to support working capital requirements and other business needs.
Its annual report had also outlined plans to raise additional capital for land-related obligations connected with ongoing and upcoming projects, business expansion and the acquisition of land parcels or development rights.
Source Reuters
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