Among famous names who will be issued shares on a preferential basis is Vanaja Sundar Iyer, who already owns a modest 1.02% stake in the company through an investment vehicle as of last quarter.
Suraj Estate Developers Ltd. shocked viewers on Monday with an announcement that the board greenlit raised approximately half a billion rupees through preferential stock issues to pick shareholders and warrants convertible to equity.
First, the company will distribute 56.05 lakh equity shares with a face value of 5 Rs apiece to investors at ₹714 per share, totalling ₹400.24 crore.
The precrorestial stock price represents a healthy 12.8% discount to Monday’s closing price for the real estate developer’s shares.
Vanaja Sundar Iyer, the current holder of a small 1.02% stake, stands poised to accept more shares in this preferential distribution.
Kewal Kiran Clothing, a publicly traded entity, is joining the preferential recipient ranks set to receive two point five lakh equity shares despite no prior position in the company.
The brokering practice Prabhudas Lilladher also appears on the preferential allotment roster.
Moreover, the company will issue 13.3 lakh convertible warrants to Ramesh Sawalram Saraogi at ₹750 per warrant, a discount of 8.4% to Monday’s closing, and fulfil the remaining ₹99 crores. Ramesh Saraogi’s Navratri Share Trading holds a modest 2.03% stake as of last quarter.
Each warrant granted carries the right to convert to one equity share within 18 months of allocation.
Suraj Estate stands among the final initial public offerings of 2023 to debut on the exchanges. The stock fixed its issue price at ₹360 and has since doubled in value.
This year alone, we have witnessed the stock surge 150%, though it briefly dipped under its IPO price for an all-time low of ₹255.
People May Ask
What is the significance of the preferential stock issue by Suraj Estate Developers Ltd.?
Suraj Estate Developers Ltd. is raising approximately half a billion rupees by issuing preferential stocks and convertible warrants to select shareholders. This move aims to boost the company’s equity and strengthen its financial standing.
Who are some notable recipients of the preferential stock allocation?
Key recipients include Vanaja Sundar Iyer, who already holds a 1.02% stake in the company, Kewal Kiran Clothing, which will receive 2.5 lakh shares despite having no previous stake, and the brokering firm Prabhudas Lilladher.
What are the pricing and discounts for the preferential stock issue?
The company will issue fifty-six point zero five lakh equity shares at a price of ₹714 each, reflecting a 12.8% discount from Monday’s closing price for the company’s shares.
Who is receiving the convertible warrants, and what are their terms?
Ramesh Sawalram Saraogi, through Navratri Share Trading, is receiving thirteen point three lakh convertible warrants at ₹750 each, which represents an 8.4% discount from the closing price. Each warrant can be converted into one equity share within 18 months.
How has Suraj Estate Developers Ltd.’s stock performed in 2023?
The stock has surged by 150% this year, doubling its IPO price of ₹360, although it briefly hit an all-time low of ₹255 during the year.
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