South-based residential real estate development company Shriram Properties is set to launch its initial public offering (IPO) on December 8, 2021, with the plan to raise Rs 600 crore. The company will disclose its price band and lot size in coming days.
The offer will close on December 10. This would be the second public issue to open next week, after RateGain Travel Technologies.
The IPO comprises a fresh issue of shares worth Rs 250 crore, and an offer for sale (OFS) of Rs 350 crore by investors. Omega TC Sabre Holdings Pte Ltd will offload shares worth Rs 90.95 crore, and Tata Capital Financial Services will sell shares worth Rs 8.34 crore.
TPG Asia SF V Pte Ltd, and WSI/WSQI V (XXXII) Mauritius Investors will also sell shares worth Rs 92.21 crore and Rs 133.5 crore, respectively, while other selling shareholders will offload Rs 25 crore worth of shares via offer for sale.
The company will make use of its fresh issue money for repaying of debts, and general corporate purposes.
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Shriram Properties, a part of the Shriram Group, is among the top five residential real estate companies in South India in terms of 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.
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As of September 2021, it has 29 completed projects, representing 16.76 million square feet of saleable area. In addition, 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.
On the financials front, it posted a loss of Rs 68.17 crore in the financial year ended March 2021 against loss of Rs 86.39 crore in previous year. Revenue from operations declined to Rs 431.5 crore from Rs 571.96 crore during the same period.
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In the six-month period ended on September 30, 2021, it also posted a loss of Rs 60.03 crore on revenue of Rs 118.17 crore.
Promoters' shareholding in the company stood at 31.98 percent including 31.82 percent stake held by Shriram Properties Holdings, while the rest of stake is held by investors including WSI/WSQI, TPG Asia, Omega TC and Tata Capital Financial Services.
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Axis Capital, ICICI Securities, and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.
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