Shriram Properties IPO To Launch On Dec 8, Price Band Set At Rs 113-118 Apiece
The firm has slashed the offer for sale size to Rs 350 crore from Rs 550 crore earlier. Now, IPO size is worth Rs 600 crore against Rs 800 crore earlier
Bengaluru -based residential real estate development company-- Shriram Properties will open for public subscription on December 8, 2021, with the aim to raise Rs 600 crore. The initial share sale will conclude on December 10, as per the red herring prospectus.
The initial public offering has set a price band of ₹113-118 apiece, with the valuation at ₹1,752 crore at the upper band.
Investors can place bids for a minimum of 125 equity shares and then in multiples of 125 equity shares. Retail investors can invest as little as Rs 14,750 in a single lot and as much as Rs 1,91,750 in a total of 13 lots.
The South-based firm has slashed the offer for sale size to Rs 350 crore from Rs 550 crore earlier. Now, IPO size is worth Rs 600 crore against Rs 800 crore earlier.
The IPO consists of fresh issuance of equity shares aggregating to Rs 250 crore and an offer for sale (OFS) of Rs 350 crore. OFS sees a partial exit of some of the existing investors including, Omega TC Sabre Holdings Pvt. Ltd. selling shares worth Rs 90.95 crore, Tata Capital Financial Services offloading shares of Rs 8.34 crore, TPG Asia SF V Pte Ltd disposing of shares worth Rs 92.20 crore and Wsi/Wsqi V (XXXII) Mauritius Investors Ltd selling shares worth Rs 133.5 crore.
The net proceeds received from the issue will be used in repayment and/ or pre-payment of debt and general corporate purposes.
In 2000, Shriram Properties had commenced its operations in Bengaluru, and since then, it has expanded its reach to other Southern states including, Chennai, Coimbatore and Visakhapatnam. Besides, it has its presence in Kolkata in East India.
Bengaluru and Chennai are their two major markets, amounting to 67.15 percent of the total estimated saleable area.
As of September 2021, the company has completed 29 projects, 35 projects are in progress, and upcoming projects aggregates to 46.72 million square feet estimated saleable area.
After concluding the public issue next Friday, the company plans to allot shares by December 15. The funds will be credited to unsuccessful investors by December 16, while eligible investors will receive equity shares in their Demat accounts by December 17.
The firm plans to list on bourses on December 20.
Axis Securities Ltd, ICICI Securities Ltd, and Nomura Financial Advisory and Securities Ltd are the lead managers to the issue.