Suraj Estate Developers has raised Rs 3.43 billion through a combination of equity shares and convertible warrants. The company secured Rs 2.43 billion via preferential allotment of equity shares and an additional Rs 1 billion through the issuance of convertible share warrants.

The funds will be used for land acquisitions, working capital, corporate purposes, and issue-related expenses. Rajan Meenathakonil Thomas, Chairperson and Managing Director, highlighted the strategic importance of the fundraise. "This timely capital infusion will enable us to expand operations, diversify our product offerings, and capture new opportunities in the residential and commercial real estate segments, delivering sustainable value to our stakeholders," he said.

On October 18, 2024, the board’s preferential issue committee approved the allotment of 21,05,467 equity shares, each with a face value of Rs 5, issued at Rs 714 per share (including a premium of Rs 709). This raised Rs 2.43 billion from non-promoter investors, increasing the company's paid-up capital from Rs 228.3 million to Rs 238.8 million.

Additionally, the board approved 13,30,000 fully convertible warrants priced at Rs 750 per warrant, raising Rs 997.5 million. The company has already received 25% of the warrant issue price, amounting to Rs 249.3 million. Warrant holders are required to pay the remaining 75% (Rs 562.50 per warrant) within 18 months of issuance.

Following these transactions, the promoter group's shareholding will reduce from 74.95% as of September 30, 2024, to 67.71% on a fully diluted basis.

(ET)