 "Suraj Estate Developers files IPO papers with Sebi to raise Rs 500 cr")
Suraj Estate Developers Ltd has filed preliminary papers with capital markets regulator Sebi to mop-up Rs 500 crore through an initial public offering (IPO).
The funds will be raised through fresh issuance of equity shares, the draft red herring prospectus (DRHP) filed with Sebi showed on Monday.
Funds to the tune of Rs 315 crore will be used for payment of the borrowings of the company and its subsidiaries -- Accord Estates, Iconic Property Developers and Skyline Realty.
Around Rs 45 crore will be utilised for acquisition of land or land development rights, besides, money will be used for general corporate purposes.
Suraj Estate Developers has been involved in the real estate business since 1986, and develops real estate across the residential and commercial sectors in the South Central Mumbai region.
At present, the promoter and promoter group holds around 95 per cent stake in the company.
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Centrum Capital and Anand Rathi Advisors are the book running leads managers to the issue.
Shares of the company will be listed on the BSE and NSE.