Shriram Properties IPO - 7 Things to Know

Shriram Properties is opening its Rs.600 crore IPO on 08th December and it will be a mix of a fresh issue and an offer for sale. Shriram Properties is one of the leading property developers in the Southern region and is part of the reputed Shriram group which has other listed companies like Shriram Transport Finance and Shriram City Union Finance.
 

Seven things to know about Shriram Properties IPO

1) Shriram Properties primarily has its focus on the mid- market and the affordable housing segments and is predominantly present in South India.

While it is principally active in the Chennai and Bengaluru property markets, it also has presence in Coimbatore, Visakhapatnam and Kolkata.

2) The Rs.600 crore IPO will comprise of a fresh issue of Rs.250 crore and an offer for sale of Rs.350 crore. Promoters and early investors will offer 2,96,61,017 shares as part of the OFS while 2,11,86,441 shares will be issued as part of fresh issue.

The IPO has been priced in the band of Rs.113 to Rs.118 and issue size is based on upper price band.

3) The Shriram Properties IPO will open for subscription on 08-Dec and close on 10-Dec. The basis of allotments will be finalized on 15-Dec and refunds will be initiated on 16-Dec.

The shares are expected to be credited to the demat account of eligible shareholders on 17-Dec and the stock will be listed on the stock exchanges on 20-Dec. 

4) The fresh issue portion of Rs.250 crore will be used by Shriram Properties for deleveraging its balance sheet and reducing debt of the parent company.

It will also use the funds to reduce debt of its subsidiaries Shriprop Structures, Global Entropolis and Bengal Shriram. 

5) The company made a profit of Rs.48.79 crore in FY19 but has made losses of Rs.-86.39 crore in FY20 and Rs.-38.18 crore FY21. Compared to FY19, the revenues fell sharply in FY21 by 30.74% to Rs.503 crore due to the lag impact of COVID-19. The losses have continued in the first half of FY22 also. 

6) Shriram Properties brings some core strengths to the table. It offers proven capabilities in project identification and execution. Its business model is largely asset light and hence scalable at short notice.

It has a leadership position in South India plus the benefit of belonging to the highly reputed Shriram Group of Chennai.

7) The issue is being lead managed by Axis Capital, IIFL Securities and Nomura Financial Advisory. KFintech (formerly Karvy Computershare) will be the registrars to the initial public offer.

IPO investors can apply in lots of 125 shares while retail category investors can apply for a maximum of 13 lots consisting of 1,625 shares.

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