Suraj Estate Developers raises Rs 343 cr via issue of equity, shares, to expand business

New Delhi: Suraj Estate Developers, a real estate company, has raised Rs 343 crore by issuing shares and warrants primarily for the purpose of purchasing land and covering its operational expenses. The company has raised approximately 243 crore rupees through preferential allotment of equity shares and an additional 100 crore rupees through the issuance of convertible share warrants. Suraj Estate stated that the funds will be used for acquiring land, working capital, general corporate purposes, and expenses related to the issue, according to PTI.

Company Secures Rs 243 Crore in Fundraising for Expansion

A successful fundraising round involved high-net-worth individuals, asset management funds, and family offices. Rajan Meenathakonil Thomas, the Chairperson and Managing Director of Suraj Estate Developers, stated that the current fundraising will give them the necessary capital for expanding their operations and broadening their product range. He said, "We plan to use these funds strategically to enhance our presence in residential and commercial real estate, take advantage of new opportunities, and provide lasting value to our stakeholders." 

Meanwhile, reports suggest that the company sold 34,12,277 equity shares for Rs 5 each at Rs 714 per share, generating a total of Rs 243,63,65,778.

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Moreover, the company's directors authorized the issuance of 13,30,000 fully convertible warrants at a price of Rs 750 each, totaling Rs 99,75,00,000 in value. The business has collected 25 pc of the warrant issue price (Rs 187.50 per warrant), amounting to Rs 24,93,75,000. Warrant holders have the right to request the remaining 75 percent of the issue price (Rs 562.50 per warrant) within 18 months after the warrant is issued. After issuing equity shares and convertible share warrants, the promoter and promoter group's ownership will decrease from 74.95 percent as of September 30, 2024 to 67.71 percent when fully diluted.

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