Suraj Estate Developers Limited has informed the Exchange about issue of Non Convertible Securities
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Awaiting price reaction for this filing.
Suraj Estate Developers has allotted 4.5 crore secured, unlisted NCDs of ₹10 face value, aggregating ₹45 crores, on a private placement basis. The sole allottee is ICICI Venture Funds Management Company, acting as investment manager for the India Real Estate Investment Fund Series 2 (an SEBI-registered AIF), with IDBI Trusteeship Services as trustee. The NCDs carry an interest rate of 12% per annum for the first 24 months and 17% per annum from the 25th month onwards, paid monthly. The total tenure is 42 months, with a 24-month principal moratorium followed by repayment in 18 equal monthly installments. The NCDs are secured by paripassu and exclusive charges over several Mumbai properties in Shivaji Park, Dadar, and Prabhadevi, along with development rights.
The company has raised ₹45 crores of high-cost debt (effective rate of 12-17%) from a marquee institutional investor (ICICI Venture-backed AIF), which strengthens its funding base but adds a notable interest burden. Since these are unlisted NCDs, there is no direct dilution for equity shareholders, but the steep coupon reflects the cost of capital for the company.