Suraj Estate IPO: A look at GMP, subscription status on final day; should you buy?
₹400 crore initial public offering (IPO) of real estate firm Suraj Estate Developers was subscribed 3.26 times by 10:55 am on the final day of bidding. It had received bids for 2.53 crore shares as against 77.77 lakh on offer. The IPO opened on Monday, December 18, and will close today, December 20, 2023.
The realty company has fixed a price band at ₹340-360 per equity share for the issue. The retail portion of the IPO was subscribed the most 4.97 times followed by the Non Institutional Investors' (NII) quota, which was bid 3.41 times. Meanwhile, the Qualified institutional buyers (QIB) part was bid just 13 percent.
GMP: The company's shares in the grey market continued trading at ₹70, indicating a 19.44 percent premium versus the IPO price at listing. It has been the same since December 17. Before that, it was at ₹66.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly. About the issue: The issue comprises a fresh issue of 1.11 crore shares worth ₹400 crore. There is no offer for sale (OFS) segment in the public offer.
Anchor Investors: Suraj Estate Developers has garnered over ₹120 crore from 11 anchor investors including Jagdish Master managed Quantum-State Investment Fund, Blue Lotus Capital, Lighthouse Canton, Societe Generale, BNP Paribas and Meru Investment Fund, SBI General Insurance Company Limited and Tata Housing Opportunities Fund, allotting 33.33 lakh equity shares at ₹360 apiece. Objective: The net proceeds from the IPO will be allocated towards the repayment and/or prepayment of the aggregate outstanding borrowings of the company and its subsidiaries. Funds will be utilized for the acquisition of land
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