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Real-estate developer Shriram Properties Limited, part of Shriram Group, will launch its initial public offering (IPO) for public subscription on December 8, 2021. The offer will close on December 10, 2021. The price band has been fixed at Rs 133-118 per equity share.
The IPO comprises of fresh issue aggregating to Rs 250 crore and Offer For Sale totalling to Rs 350 crore. The face value of each equity share is Rs 10. The employees of the company can purchase the shares at a discount of Rs 11 to the final issue price.
Company Summary
Shriram Properties is one of the leading residential real estate development companies in South India, focused on the mid-market and affordable housing categories. The realty firm 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, according to JLL Report.
The company is also present in the mid-market premium and luxury housing categories as well as commercial and office space categories in their core markets – Bengaluru and Chennai. According to JLL report, mid-market category has housing units priced between Rs 40 lakhs and 80 lakhs, mid-market premium category has a ticket size between Rs 80 lakh and Rs 1.2 crore, affordable housing units are priced below Rs 40 lakhs and luxury houses cost more than Rs 1.2 crore.
As of September 30, 2021, they have completed 29 projects, representing 16.76 million square feet of saleable area. Among the completed projects, 24 projects are in Bengaluru and Chennai accounting for 90.56% of its saleable area. Further, 83.69% of our total saleable area for completed projects were in the mid-market category and affordable housing category. Mid-market segment accounted for 51.44% and affordable housing segment accounted for 32.25%. The remaining was in the commercial and office space and luxury housing categories.
In addition, they have 26 ongoing projects, 5 projects under development and 4 forthcoming projects, which accounted for 56.28%, 17.71% and 26.01% of our total estimated saleable area, respectively, as of end of September 2021.
Competitive Strengths
- Leading residential real estate development company in South India with a focus on affordable housing and mid-market housing categories.
- Part of the Shriram Group and also backed by marquee investors.
- Proven capabilities in project identification and strong execution track record.
- Well-established strategic relationships with financial investors.
- Scalable and asset-light business model
- Well-positioned to benefit from regulatory and industry developments.
- Experienced and professional management team.
Company Promoters
M. Murali, Shriram Properties Holdings Private Limited and Shriram Group Executives Welfare Trust are the promoters of the company.
Company Financials
Particulars | For the period ended (Rs in crore) | |||
Apr-Sept FY22 | FY21 | FY20 | FY19 | |
Total Assets | 3293.36 | 3299.49 | 3417.30 | 3365.63 |
Total Revenue | 155.15 | 501.31 | 631.84 | 723.78 |
Profit After Tax | (60.03) | (68.18) | (86.39) | (48.79) |
Purpose of the IPO
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company and its subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram aggregating to Rs 200 crore.
- General corporate purposes, subject to applicable laws.
IPO Details
IPO Opening Date | December 8, 2021 |
IPO Closing Date | December 10, 2021 |
Issue Type | Book Built Issue IPO |
Face Value | Rs 10 per equity share |
IPO Price | Rs 113 to Rs 118 per equity share |
Market Lot | 125 Shares |
Minimum Order Quantity | 125 Shares |
Listing At | BSE NSE |
IPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 125 | Rs 14,750 |
Maximum | 13 | 1625 | Rs 1,91,750 |