Suraj Estate Developers Limited is a real estate construction company. The company develops residential and commercial real estate in the South Central Mumbai region. The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavan(Phase-I up to 6th floor) and Tranquil Bay-I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and Tranquil Bay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-I and Gloriosa Apartments and others.
OBJECTS OF THE ISSUE
- Repayment of the aggregate outstanding borrowings.
- Acquisition of land or land development rights.
KEY MANAGERIAL PERSONNEL
Rajan Meenatha konil Thomas
Chairperson and Managing Director of the Company. He has been associated with Company since its incorporation. He has received Lifetime Achievment Award from ET Now in the year 2022. He has over 36 years of experience in various aspects of real estate business.
Rahul Rajan Jesu Thomas
He holds a bachelor’s degree in Commerce from the University of Mumbai and corporate finance certificate from Harvard University. He has received 40 under 40 award from Realty+ in the year 2022. He has over 16 years of experience in various aspects of real estate business.
Shreepal Shah
Chief Financial Officer ofCompany. He holds a bachelor’s degree in Engineering from University of Mumbai and a master’s degree in Business Administration from University of Pune. Prior to joining Company, he was working with P.Raj & Co., Chartered Accountants providing business and finance advisory.
Shivil Kapoor
Company Secretary of the Company. He holds a bachelor’s degree in Commerce from Devi Ahilya Vishwavidyalya, Indore, bachelor’s degree in Law from Devi Ahilya Vishwavidyalaya , Indore and is a member of the Institute of Company Secretaries of India.
Dipen Sheth
Vice President - Sales of the Company. He holds a bachelor’s degree in Commerce from University of Mumbai. Prior to joining Company, he was associated with Kanakia Spaces Private Limited and Oasis Lifespaces Private Limited.
COMPANY PROFILE
- Suraj Estate has developed more than 10lakh square feet of land in Mumbai.
- In the residential portfolio, Suraj Estate is present in the "Value Luxury' and "Luxury' segments invariouspricecategorieswithunitvaluesrangingfromRs.10.00milliontoRs.130.00million.
- The company focuses primarily on value luxury, luxury segments , and commercial segments. SEDL is now venturing into residential real estate development in the Bandra sub-market.
- The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavanand Tranquil Bay- I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and TranquilBay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-Iand Gloriosa Apartments and others.
COMPETITIVE STRENGTHS
- Established brand with along-standing presence in Value Luxury Segment and Luxury Segment in the residential real estate market of South Central Mumbai region
- Diversified portfolio encompassing product offerings across various price points in value luxury and luxury segments.
- Strong expertise in tenant settlement in redevelopment projects Experienced promoters and management team.
KEY STRATEGIES
- Enhance leading market position in the South Central Mumbai region by leveraging Upcoming Projects
- Continue to focus on redevelopment projects through asset - lightmodel
- Continue to expand Land Reserves in the South Central Mumbai region and opportunistically build a position in other sub-markets within the MMR region.
- Continue to selectively develop Commercial Projects in the South Central Mumbai region.
KEY CONCERNS
- Business is dependent on the performance of, and the conditions affecting, the real estate sub- markets in the South-Central Mumbai region.
- Any uncertainty in the title to real estate assets could have a material adverse impact on current and future revenue.
- The industry in which the company operates is competitive and highly fragmented resulting in increased competition that may adversely affect results.
- Any negative cash flows in the future would adversely affect cash flow requirements.
COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)
FINANCIALS (RESTATED CONSOLIDATED)
OUTLOOK & VALUATION
Since 1986, SEDL has been a real estate developer in the South Central Mumbai area, working on projects in both the residential and commercial sectors.The residential portfolio of SEDL is situated in the sub-markets of Mahim, Dadar, Prabhadevi, and Parel, which are part of the South Central Mumbai micro market. It has shown consistent growth over the stated periods, and the manage mentis optimistic that this trend will continue.
With extensive market knowledge ,SED Lisa market leader in the combined South-Central Mumbai submarkets; yet, the company must contend with competition from a range of national and regional real estate developers.
The IPO is coming at a P/E of 35.64 which looks fairly priced so we recommend applying for this IPO for listing gains.
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