NEW DELHI: Suraj Estate Developers has raised Rs 343 crore via preferential allotment of equity shares amounting to Rs 243 crore and additional sum of Rs 100 crore via issue of convertible share warrants.
The funds will be utilized for land acquisitions, working capital, general corporate purposes, and issue related expenses.
Rajan Meenathakonil Thomas, chairperson and managing director of the company said, “This timely fundraise will provide us with the growth capital to expand our operations and diversify our product offerings. We will strategically utilize these funds to strengthen our position in the residential and commercial real estate segments, capture new opportunities, and deliver sustainable value to our stakeholders.”
The members of preferential issue committee of board of directors of the company through resolution passed on October 18, 2024, approved the allotment of 21,05,467 fully paid-up equity shares having face value of Rs 5 each at an issue price of Rs 714 (including premium of Rs 709) per equity share to the allottees falling under non-promoter group raising a total of Rs. 243,63,65,778.
Post allotment of the aforesaid shares, the paid up capital of the company has increased from Rs 22,83,39,605 (4,56,67,921 equity shares of face value of Rs 5 each fully paid up) to Rs 23,88,66,940 (4,77,73,388 equity shares of face value of Rs 5 each fully paid up).
Additionally, the company’s board of directors approved the allotment of 13,30,000 fully convertible warrants at an issue price of Rs. 750 per warrant, with a total value of Rs 99,75,00,000.
The company has received 25% of the issue price for the warrants (Rs. 187.50 per warrant), totalling
to Rs 24,93,75,000. Warrant holders are entitled to apply for the remaining 75% of the issue price (Rs
562.50 per warrant) within 18 months from the date of warrant issuance.
Post issuance of equity shares and convertible share warrants, the promoter & promoter group holding will be diluted from 74.95% as of 30th September, 2024 to 67.71% on a fully diluted basis.
