The company's shares opened at Rs 340 apiece on the National Stock Exchange (NSE), marking a 5.55 per cent decline from the issue price of Rs 360. Meanwhile, on the Bombay Stock Exchange (BSE), the stock debuted at Rs 343.80, reflecting a 4.5 per cent discount.
The Suraj Estate IPO, which was open for subscription from December 18 to 20, had a price band of Rs 340-360 per share. Despite raising Rs 120 crore from 11 anchor investors ahead of the IPO, the company faced a weak market reception.
During the subscription period, the IPO garnered a subscription of 16.57 times, with the retail category subscribing 9.85 times, the Qualified Institutional Buyers (QIB) category at 25.74 times, and the Non-Institutional Investors' (NII) portion at 20.02 times.
The IPO comprised a fresh issue of 1.11 crore shares valued at Rs 400 crore, with no offer for sale (OFS) segment. The net proceeds are slated for the repayment and/or prepayment of outstanding borrowings, land acquisition or development rights, and general corporate purposes.
Suraj Estate Developers, established in 1986, specialises in residential and commercial real estate development in South-Central Mumbai.
Operating entirely with third-party contractors for construction services, the company has completed 42 projects and currently has 13 ongoing and 16 upcoming projects, covering over 10 lakh square feet of land in Mumbai. With a focus on 'value luxury' and 'luxury' segments, the company caters to various price categories.
The book-running lead managers for the Suraj Estate Developers IPO are ITI Capital Ltd and Anand Rathi Securities, with Link Intime India Private Ltd serving as the IPO registrar.