Shriram Properties Limited: Opens tomorrow; find key details that investors must know before investing

Shriram Properties Limited, a leading real estate developer and part of Shriram Group, will launch its initial public offering (IPO) for public subscription on Wednesday, December 8, 2021. The three-day initial share sale will conclude on Friday, December 10, 2021.

The price band for the public issue has been fixed at Rs 113-118 per share for its Rs 600-crore initial share sale. The company is offering a discount of Rs 11 per equity share for the eligible employee's category. The issue has a reservation of equity shares worth Rs 3 crore for the company's employees.

The initial public offering comprises a fresh issue of Rs 250 crore, and an offer for sale of Rs 350 crore by investors including Omega TC Sabre Holdings Pte Ltd, Tata Capital Financial Services, TPG Asia SF V Pte Ltd, and WSI/WSQI V (XXXII) Mauritius Investors.

Investors can bid for a minimum of 125 equity shares and in multiples of 125 equity shares thereafter. Retail investors can invest a minimum of Rs 14,750 for one lot, and their maximum investment would be Rs 1,91,750 for 13 lots. Retail investors are allowed to invest up to Rs 2 lakh in an IPO.

About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

• Repayment and/ or pre-payment, in full or part, of certain borrowings availed by its Company and its Subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram; and
• General corporate purposes, subject to applicable laws

Issue Timeline

• Bidding Period for the IPO: December 8-10, 2021.
• Allotment: December 15, 2021.
• Initiation of Refunds: December 16, 2021.
• Credit of Shares to Demat Account: December 17 2021.
• IPO Listing: December 20, 2021.

Axis Capital Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue. KFin Technologies Private Limited is the registrar for it.

The company's shares are expected to list on stock exchanges BSE and NSE on December 20, 2021.

Shriram Properties is one of the leading residential real estate development companies in South India focusing primarily on the mid-market and affordable housing categories. It is among the top five residential real estate companies in South India in terms of the number of units launched between the calendar years 2012 and the third quarter of 2021 across Tier 1 cities of South India including Bengaluru, Chennai and Hyderabad. (Source: JLL Report) We are also present in the mid-market premium and luxury housing categories as well as commercial and office space categories in our core markets.

As of September 30, 2021, Shriram Properties holds 29 Completed Projects, representing 16.76 million square feet of Saleable Area, out of which its 24 Completed Projects in the cities of Bengaluru and Chennai accounted for 90.56% of our Saleable Area. Further, 83.69 per cent of our total Saleable Area for Completed Projects were in the mid-market category and affordable housing category (with mid-market and affordable categories accounting for 51.44 per cent and 32.25 per cent respectively), and the remainder in the commercial and office space and luxury housing categories, as of September 30, 2021. Additionally, plotted developments accounted for 33.41 per cent and 34.67 per cent of sales volumes during the six months ended September 30, 2021, and the Financial Year 2021, respectively.

In addition, as of September 30, 2021, it has a total portfolio of 35 projects in Ongoing Projects, Projects under Development and Forthcoming Projects aggregating to 46.72 million square feet of estimated Saleable Area.