The South India based company Shriram Properties has announced several key details regarding its initial public offering launching on 8 December 2021. Investors looking to put their money in this IPO should get all the details below before taking the plunge.
Shriram Properties IPO Details
| IPO Opening Date | 8 December 2021 |
| IPO Closing Date | 10 December 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs. 10 per share |
| Market Lot | 125 shares |
Key Highlights of Shriram Properties IPO
- Shriram Properties has settled on a price band for its IPO. Its price band has been fixed at Rs. 113 to Rs. 118 per share.
- Investors can bid for a minimum of 125 shares, followed by multiples of 125. This fact means that retail investors may invest Rs. 14,750 for a single lot size. Moreover, since they can support only 2 lakh in the IPO, the maximum they can invest is Rs. 1,91,750. This sum amounts to 13 lots.
- The breakup of the IPO is as follows- a new issue of shares of Rs. 250 crores and an OFS amounting to 350 crores.
- Shareholders diluting their stake in thiscompany are Tata Capital Financial Services, Omega TC Sabre Holdings Pte. Ltd., WSI/WSQI V (XXXII) Mauritius Investors, TPG Asia SF V Pte Ltd.
- Moreover, other shareholders will sell a maximum of 25 crores worth of shares in the OFS.
- Further, let’s have a look at the reservation percentages.
| Type of Investor | Reservation % |
| Qualified Institutional Buyers | 75% |
| Retail Investors | 10% |
| Non-institutional investors | 15% |
If the company proposes to hold an anchor round, it will be open on 7 December 2021 for a day.
Moreover, Shriram Properties has reserved Rs. 3 crore worth of shares for their employees at an Rs. 11 per share discount to the final price of this issue.
The stocks will trade on the National Stock Exchange and the Bombay Stock Exchange.
About the Company
Shriram Properties, incorporated in 2000, is a part of the Shriram Group. This company is among the leading property development companies in Southern India, focusing on affordable housing and mid-market sectors. However, they are also present in the following segments:
- Office space
- Mid-market premium
- Mid-marketluxury housing categories
- Commercial
Shriram Properties has completed 29 projects as of September 2021. 24 of these projects are in Bengaluru and Chennai. They presently have a portfolio of 35 ongoing projects.
Competitive Strengths
The competitive strengths of this company are:
- Member of reputed Shriram Group
- Among the leading real estate developers in Southern India for the residential sector
- Robust financial position
- A scalable business model that is asset-light
- Proven capacity to execute projects
- An erudite and professional management team
Financial Highlights
The company financials are for the past three years are shown below:
| For the year ended | 31 March 2021 | 31 March 2020 | 31 March 2019 | |
| Total Assets | 32,994.87 | 34,173.03 | 33,656.31 | |
| Total Revenue | 5,013.08 | 6,318.43 | 7,237.80 | |
| Profit After Tax | (681.78) | (863.93) | 487.91 |
Note: Values are in Rs. Millions
Bottom Line
The anchor investment round will be replete with Singapore, India, US and European investors.
Further, the objective of the IPO is to repay certain debts of the company and its subsidiary Shriprop Structures, Bengal Shriram and Global Entropolis. Also, they propose to use the funds for regular corporate purposes.
If you are interested in purchasing shares of this company, do so after thorough research and analysis.
Frequently Asked Questions
- Who are the promoters of this company?
Ans. The company promoters are:
- Murali
- Shriram Group Executives Welfare Trust
- Shriram Properties Holdings Private Limited
- What is the timeline for the share allotment and the listing?
Ans. The timeline for the share allotment and listing is shown below:
Finalised share allotment – 15 December 2021
Return of funds to unsuccessful investors – 16 December 2021
Reflection of shares in DEMAT account – 17 December 2021
Trading on NSE and BSE begins on – 20 December 2021
- Who are the book running lead managers to the issue?
Ans. The book running lead managers are:
- Nomura Financial Advisory and Securities (India)
- ICICI Securities
- Axis Capital
