The share price of Suraj Estate Developers debuted on the stock exchanges with little fanfare today. It was listed for ₹340 a share on the NSE, 5.55 percent below the ₹360 issue price.
Listing of Suraj Estate Developers
The share price of Suraj Estate Developers made a shaky debut on the exchanges today. It was listed at ₹340 per share on the NSE, 5.55 percent below the ₹360 issue price, and at ₹343.80 per share on the BSE, 4.5 percent below the issue price.
The IPO for Suraj Estate, which was priced between ₹340 and ₹360 per share, was open for subscription from December 18 to December 20. Prior to the IPO, ₹120 crore was raised from 11 anchor investors who were allotting 33.33 lakh equity shares at ₹360 each.
The public offering for Suraj Estate Developers received 16.57 subscriptions during the subscription period; the retail category received 9.85 subscriptions, the Qualified Institutional Buyers (QIB) category received 25.74 subscriptions, and the Non-Institutional Investors (NII) component received 20.02 subscriptions.
Details about Suraj Estate’s IPO
The public offer does not include an offer for sale (OFS) section. The offering consists of a new issue of 1.11 crore shares valued at ₹400 crore.
The net proceeds of the initial public offering (IPO) will be used for general corporate objectives, the purchase of property or land development rights, and the repayment and/or prepayment of the total outstanding borrowings of the firm and its subsidiaries.
The Suraj Estate Developers IPO’s book-running lead managers are ITI Capital Ltd and Anand Rathi Securities, while the registrar is Link Intime India Private Ltd.
Suraj Estate’s current IPO GMP
As in the previous session, Suraj Estate’s share price is currently trading at a premium of ₹15 in the grey market, according to the company’s IPO GMP of ₹15, or the grey market premium.
The expected listing price of Suraj Estate shares was ₹375 apiece, 4.17 percent more than the IPO price of ₹360, taking into account the upper end of the IPO pricing band and the current premium on the grey market.
An indication of an investor’s willingness to part with more money than the issue price is a “grey market premium.”
On Friday, December 15, Suraj Estate Developers received nearly ₹120 crore from anchor investors. SBI General Insurance Company Limited and Tata Housing Opportunities Fund were among the 11 investors who participated in the anchor book.
The corporation has distributed 33.33 lakh equity shares, at the upper end of the price range, to 11 funds at a cost of ₹360 each.
ITI MF, Aditya Birla Sun Life, Jagdish Master-managed Quantum-State Investment Fund, Blue Lotus Capital, Lighthouse Canton, Societe Generale, BNP Paribas, and Meru Investment Fund are among the other investors who took part in the anchor book.
In its exchange filing, the company stated that the allocation of 33,33,333 equity shares to anchor investors at the anchor investor allocation price of ₹360 per equity share (including share premium of ₹355 per equity share) was finalized by the IPO Committee of the Company, in consultation with the Book Running Lead Managers to the Issue.
“Of the 3,333,333 Equity Shares allotted, 555,632 Equity Shares were mutual funds through two schemes,” the statement continued.
Details of Suraj Estate Developers’ IPO
The pricing range for the Suraj Estate Developers initial public offering (IPO) has been set at ₹340 to ₹360 for each equity share with a face value of ₹5. The IPO is set to begin on Monday, December 18, and finish on Wednesday, December 20.
Suraj Estate Developers Limited’s ₹400 crore initial share offering consists only of a new 1.11 crore share issuance.
A minimum of 41 equity shares and subsequent multiples of 41 equity shares are up for grabs for investors bidding on the issue, which is being made through the Book process. A minimum of 50% of the issue will be allocated proportionately to Qualified Institutional Buyers, a minimum of 15% will be allocated to Non-Institutional Bidders, and a minimum of 35% will be allocated to Retail Individual Bidders.
The lead managers for the book running are Anand Rathi Advisors Limited and ITI Capital Limited.