Shriram Properties files draft prospectus for Rs 800 crore IPO: Check all details

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LAST UPDATED: April 11, 2021, 2:05 p.m.

New Delhi (Anish Yande): The initial public offering of Shriram Properties Ltd is set to be launched in the upcoming weeks. Shriram Properties Ltd would be raising Rs 800 crore through the issue. The real estate firm has filed the draft red herring prospectus (DRHP) this week with market regulator Securities and Exchanges Board of India (SEBI).

Shriram Properties Ltd IPO Important Details:

The Shriram Properties Ltd IPO consists of a fresh issue of Rs 250 crore and an offer for sale (OFS) of up to Rs 550 crore.  

The offer for sale comprises a sale of equity shares amounting to Rs 148.90 crore by TPG Asia SFV Pte. Ltd and shares worth Rs 13 crore by Tata Capital Financial Services. WSI/WSQI V (XXXII) Mauritius Investors Ltd. would be offering shares for sale amounting to Rs 216 crores. 

Omega TC Sabre Holdings would be selling off shares worth Rs 147.1 crore. Other shareholders are selling shares up to Rs 25 crore. 

The key investors of Shriram Properties Ltd include Walton Street Capital, 

Starwood Capital, Tata Capital, and TPG Capital. The real estate firm had raised $270 million from institutional investors from 2008 to 2014.

Shriram Properties Ltd had stated earlier that the company expects to get the regulator’s approval next month, following which the IPO would be open for receiving subscriptions.

The real estate firm had initially plans for launching an IPO in 2018. However, due to a decline in the residential market. This is Shriram Properties Ltd’s second attempt at launching an IPO in 2018. 

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The proceeds from the Shriram Properties Ltd fresh issue of Rs 200 crore will be used for pre-payment or repayment of the company’s borrowings. The company would be looking to issue pre-payment or repayment of borrowings by its subsidiaries, Bengal Shriram, and Global Entropolis. 

Shriram Properties Ltd is one of the leading residential real estate firms in South India. The company has a primary focus on the affordable housing and mid-market categories.

As of December 2020, the amount outstanding under its fund-based loan facilities was Rs 693.17 crore. The book running lead managers to the issue are Axis Securities Ltd, Nomura Financial Advisory and Securities Ltd, and ICICI Securities. 

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