Shriram Properties Ltd IPO

Last Updated: 03 January 2022 8:08 AM by 5Paisa

Shriram properties Ltd IPO is opening for subscription between December 8 and December 10. The listing date is set as December 20, 2021. The price band of the issue is Rs.113-118 per share with the minimum investment standing at Rs.14,750 for 1 lot of shares (1 lot= 125 shares). 

The realty developer, Shriram Properties Ltd, filed it’s draft red herring prospectus with SEBI for an IPO worth Rs.800 crore but they have now cut the size to Rs.600 crore. The IPO comprises a fresh issue worth Rs.250 crore and an OFS of upto Rs.350 crore. The initial investors like TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital, are planning to partially offload their equity shares in this offer for sale. The book running lead managers to this issue are NOMURA Financial Advisory and Securities Pvt Ltd, ICICI Securities Ltd, Axis Capital Ltd. Omega TC Sabre Holdings Pte. Ltd will be offloading shares worth Rs.147.1 crore, Tata Capital will be offloading shares worth Rs.13 crore, upto Rs.148.9 crore offloaded by TPG Asia SFV and Rs.216 crore by Mauritius Investors. 


 
Objectives of the issue:
Rs.200 crore of the net proceeds is to be kept aside for prepayment or repayment of debt undertaken by the subsidiaries, Shiprop Structures, Global Entropolis and Bengal Shriram.

It has been reported that Sundaram Asset Management, Premji Invest and the Chinese conglomerate Fosun Group’s subsidiary- Fosun Hive, are likely to be anchor investor for this IPO bound company. A total investment of $150 million is being estimated as the total investment of the three companies. 

Shriram Properties, founded in 2000 by M.Murali, is a residential real estate company in South India. It focuses largely on the affordable housing category along with a presence in luxury, commercial and office space categories. Between 2015 and 2020, the company is one of the five largest real estate companies in South India, in terms of the number of units launched.

As of 31 September 2020, the company has successfully completed 29 projects which represent around 16.8 million square feet of sale-able area. Along with this, they have 35 ongoing projects and projects under development and this will take the sale-able area to 46.74 million square feet. The land reserves of the company, as of 30 September, 2021, stands at 197.47 acres with a saleable area of approximately 21.45 msf. 

Between 2008 and 2014, Shriram properties managed to raise $270 million from institutional investors and three-fifths of the company are owned by these investors. The post issue market cap is estimated to be around Rs.1,927-2,002 crore.