Suraj Estate Developers Limited has successfully completed the allotment of non-convertible debentures worth ₹45 crore following the management committee meeting held on February 21, 2026. The company informed stock exchanges about the outcome of the meeting that was initially scheduled for February 20, 2026, to deliberate on the significant fundraising initiative.

NCD Allotment Details

The management committee approved the allotment of 4.5 crore unlisted, secured, non-convertible debentures to IDBI Trusteeship Services Limited. The allotment represents a strategic funding arrangement through private placement basis with specific terms designed to meet the company's capital requirements.

Interest Structure and Payment Terms

The NCDs carry a structured interest payment mechanism with varying rates across different periods. The interest structure provides for monthly payments with a moratorium period for principal repayment, offering flexibility in the initial phase.

Security and Collateral Framework

The debentures are secured by comprehensive charges over multiple prime properties located across strategic Mumbai locations. The security structure encompasses both paripassu and exclusive charges over various development projects.

Strategic Partnership and Fund Utilization

The allotment to IDBI Trusteeship Services Limited represents a significant institutional partnership. The entity acts as Trustee of India Real Estate Investment Fund Series 2, an Alternate Investment Fund organized as a contributory trust under Indian law. The fund is registered with SEBI as a venture capital fund under Alternate Investment Fund Regulations and operates through ICICI Venture Funds Management Company Limited as its investment manager.

Regulatory Compliance and Documentation

The company has fulfilled all regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Mukesh Gupta, holding ICSI Membership No. F6959, digitally signed and submitted the formal notifications to both NSE (Symbol: SURAJEST) and BSE (Scrip Code: 544054) on February 21, 2026. The comprehensive documentation includes detailed annexures covering all aspects of the NCD issuance, security arrangements, and repayment schedules.

Source: None/Company/INE843S01025/ee2ea8a8-6864-4309-9d1c-7637b0f38bd4.pdf

Suraj Estate Developers Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, provides insights into the utilization of proceeds from the company's preferential issue.

Issue Background and Fund Utilization

The company had originally planned to raise Rs. 500.00 crore through its preferential issue but due to undersubscription, the actual amount raised was Rs. 343.39 crore. The issue comprised 34,12,277 equity shares and convertible warrants, with the issue period running from October 05, 2024, to October 18, 2024.

Quarter Performance and Fund Status

During Q3FY26, the company reported no utilization of issue proceeds toward any of the stated objects. The monitoring agency confirmed that Rs. 293.51 crore has been called and fully utilized as of the quarter end, with no unutilized funds remaining.

Stock Price Concerns and Warrant Viability

The monitoring agency raised significant concerns about the company's stock performance and its impact on warrant conversion. Key observations include:

• Share price declined by over 50% from the offer price
• Stock declined by approximately 59% from its 52-week high
• Closing price of Rs. 264.00 as on December 31, 2025
• Warrant exercise price remains at Rs. 750.00 with balance call value of Rs. 375.00 per share

The monitoring agency noted that the current stock price being significantly lower than the warrant exercise price might affect the viability of the stated objects and could materially impact investor decision-making.

Regulatory Compliance and Timeline

The report confirms that the company has adhered to the prescribed timeline for fund utilization, with all received proceeds deployed within the stipulated 12-18 months period. The company had passed a board resolution dated June 27, 2025, for revision in the cost of objects due to the undersubscription in the preferential issue.

Future Outlook

While no deviations from the disclosed objects were reported during the quarter, the monitoring agency highlighted that the undersubscription and significant stock price decline pose challenges to the overall viability of the stated objectives. The company continues to operate under the revised cost structure approved by the board of directors.