Sunteck Realty Limited (SRL) | Latest market updates

Sunteck Realty Board Approved To Raise Rs.2250 Cr

The board of Sunteck Realty Limited has approved a proposal to raise up to Rs 2,250 crore through the issuance of equity and debt securities.

Sunteck Realty Limited (SRL) is one of India’s leading luxury real‐estate developers. The company focuses on a city‐centric development portfolio of about 52.5 million square feet spread across 32 projects. It has differentiated its projects under six brand portfolios - Uber luxury residences, Ultra luxury residences, Premium luxury residences, Marquee Luxury Destination, Aspirational luxury residences, and Commercial & Retail developments.

SunTeck Realty Fundraise Approval

Sunteck Realty’s board has greenlit a plan to secure up to Rs 2,250 crore by issuing a mix of equity and debt securities. The strategy involves raising Rs 1,500 crore through the mode of non-convertible debt in multiple tranches through private placement. For the additional amount of Rs.750 crores, the company intends to gather it through the issuance of equity shares or other convertible securities, after the approval from shareholders. This financial decision is aimed at enhancing Sunteck Realty’s financial position and fueling its growth trajectory within the real estate sector.

Recent Q4 Performance

Sunteck Realty Ltd reported a significant improvement in its fourth-quarter results. The company recorded a net profit of ₹101.3 crore, contrasting with a net loss of ₹27.9 crore in the corresponding period last year. This impressive performance was driven by a remarkable 773.01% increase in revenue from operations, reaching ₹426.9 crore. Moreover, the company’s EBITDA surged to ₹153.4 crore, compared to a loss of ₹9.1 crore in the previous fiscal year. With an EBITDA margin of 35.9%, This reflects a robust financial performance from the company.

Conclusion

Sunteck Realty’s board approval to raise Rs 2,250 crore through a mix of equity and debt securities has shown its strategic intent to enhance its financial stability and support growth initiatives. The company aims to enhance flexibility, capitalize on market opportunities, and drive long-term shareholder value in the dynamic real estate landscape.

The stock of Sunteck Realty currently trades at Rs.475 a piece and is up by 65% over the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.