Shares of Suraj Estate Developers made a weak debut at Dalal Street on Tuesday, as the real estate player debuted at Rs 340 on NSE, a 6 per cent discount to its issue price of Rs 360 apiece. The scrip got listed at Rs 343.80 on BSE, down about 5 per cent.
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The poor IPO listing came in against grey market trends that hinted at a premium of Rs 15-20 per share or a 4-6 per cent listing pop.
Suraj Estate Developers sold its IPO in the price band of Rs 340-360 apiece with a lot size of 41 shares. The IPO ran from December 18 to December 20. The company raised about 400 crore from its primary offering, which entirely included a sales of 1,11,11,111 fresh shares.
The issue was overall subscribed 15.59 times, with the portion for qualified institutional bidders (QIBs) getting 24.31 times subscription.
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The quota for non-institutional investors’ category was subscribed 18.89 times. The quota reserved for retail investors was subscribed 9.20 times during the three-day bidding process.
Established in 1986, Suraj Estates Developers specialises in the development of residential and commercial real estate in the South-Central Mumbai region. Notably, the company relies entirely on third-party contractors for the construction services of its projects, as it does not provide any in-house construction services.
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ITI Capital and Anand Rathi Securities serve as the book running lead managers for the Suraj Estate Developers IPO, with Link Intime India appointed as the registrar for the issue.
