Suraj Estate set to gain over Rs.500 crore via Preferential Share allotments

Suraj Estate Developers Ltd. informed the stock exchanges that the board of directors had approved the company’s plan to raise $500 million by issuing warrants that can be converted into equity shares and preferential shares to qualified shareholders. 

At an issue price of 714, the company will first issue 56.05 lakh equity shares to shareholders with a face value of 5  each, totaling 400.24 crore. The issue cost for the particular offers is at a 12.8% rebate to Monday’s end cost of the shares of the rea estate developer. 

Vanaja Sundar Iyer, who owns a 1.02 percent stake in the business as of the June quarter through Si Investments and Broking Pvt., is one of the notable individuals who will receive preferential shares. Ltd.

Kewal Kiran Clothing, a publicly traded company, is another name on the list. They will receive preferentially 2.5 lakh equity shares from the company. Kewal Kiran Clothing held no stake in the business in the past. 

In addition, Ramesh Sawalram Saraogi will receive 13.3 lakh convertible warrants from the company at a price of 750 rupees each, which amounts to the remaining 99 crore and represents an 8.4% discount from Monday’s closing price. Navratri Share Trading Pvt., headed by Ramesh Saraogi, at the end of the June quarter, Ltd. Held a stake in the business that was 2.03%. Within 18 months of the grant date, each warrant will be able to be exchanged for one equity share. Suraj Estate is one of the last IPOs listed on the bourses in 2023. 

Since the stock’s issue price was set at 360 yen per share, its value has more than doubled. The stock briefly fell below its IPO price to reach an all-time low of 255 yen earlier this year, but since then, it has seen a 150 percent increase.