Suraj Estate Developers Ltd on Monday said it has used ₹285 crore from the IPO proceeds to repay the entire outstanding loans of the company and its subsidiaries.
The Mumbai-based real estate developer was listed on December 26, 2023 after completing an initial public offering (IPO) worth ₹400 crore.
Suraj Estate said in a stock exchange filing that it used ₹285 crore from the IPO proceeds for repayment or early repayment of the entire outstanding loans of the company and its subsidiaries.
The Company's subsidiaries are Accord Estates Private Limited, Iconic Property Developers Private Limited and Skyline Realty Private Limited.
The Company stated that the funds were used in accordance with the subject matter of the offering set forth in the prospectus under the heading “Use of Net Proceeds.” It also noted that there was “no discrepancy in the utilization of funds and they were used in accordance with the purposes stated in the company’s prospectus.”
Last month, the real estate developer entered the capital market with a ₹400-crore IPO. The issue of around 1.11 lakh shares was entirely a fresh issue of shares without any offer for sale component. The price range was between ₹340 and ₹360 per share.
The shares were listed on NSE and BSE on December 26, 2023.
The company had mentioned in its prospectus that the proceeds from the IPO would be used to pay off the debts of the company and its arms – Accord Estates and Iconic Property Developers.
In addition, the funds would be used for land acquisition and general corporate purposes.
Suraj Estate has developed real estate projects in the residential and commercial sectors in the South Central Mumbai region. The residential projects are located in Mahim, Matunga, Dadar, Prabhadevi and Parel.
Shares of Suraj Estate were trading 1.45% lower at ₹347.3 apiece at 10:09 am on the BSE.
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