South India-based real estate development company Shriram Properties has fixed a price band at Rs 113-118 per share for its initial public offering, which will open for subscription on December 8 and close on December 10.
Investors can bid for a minimum 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 IPO.
The maiden public offering of Rs 600 crore 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, WSI/WSQI V (XXXII) Mauritius Investors.
In addition, other selling shareholders will sell up to Rs 25 crore worth of shares via offer for sale.
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Of the issue size, 75 percent portion is reserved for qualified institutional buyers, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors. The anchor book, if any, will open for a day on December 7.
The company reserved shares worth Rs 3 crore for its employees, who will get those shares at a discount of Rs 11 per share to the final issue price.
Promoters of Shriram Properties are M Murali, Shriram Properties Holdings, and Shriram Group Executives Welfare Trust who have 31.98 percent shareholding in the company, and the rest is held by investors including Tata Capital Financial Services, Omega TC Sabre Holdings, WSI/WSQI V (XXXII) Mauritius and TPG Asia SF V.
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Shriram Properties commenced operations in Bengaluru in 2000 and since then it has expanded its presence to other cities in South India (Chennai, Coimbatore and Visakhapatnam). In addition, it also has presence in Kolkata in East India. Bengaluru and Chennai are its two key markets which accounted for 67.15 percent of total estimated saleable area.
As of September 2021, it had 29 completed projects, and 35 are ongoing, under development and forthcoming projects aggregating to 46.72 million square feet of estimated saleable area.
In addition, it has land reserves of approximately 197.47 acres, with a development potential of approximately 21.45 million square feet of estimated saleable area.
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Shriram Properties posted a loss of Rs 60.03 crore on revenue of Rs 118.17 crore in the six months period ended September 2021.
In FY21, it reported a loss of Rs 68.17 crore against loss of Rs 86.39 crore in the previous year. Revenue from operations fell to Rs 431.5 crore from Rs 571.96 crore during the same period.
After closing the public issue on next Friday, the company will finalise the share allotment by December 15. The funds will be refunded to unsuccessful investors by December 16, and eligible investors will get equity shares in their demat accounts by December 17.
The trading in equity shares of the company will likely commence on the BSE and NSE on December 20.
Axis Capital, ICICI Securities, Nomura Financial Advisory and Securities (India) are acting as book running lead managers to the issue.