Shriram Properties Limited has filed an updated DRHP to raise Rs. 600-700 crores via an initial share sale. This company had previously filed preliminary papers with SEBI in April 2021 to launch a public issue worth Rs. 800 crores. In June 2021, the capital market regulator had given this Chennai-based company the nod to float its IPO.
Considering that there’s an upsurge in demand for residential properties along with increased investor interest with regard to this segment, Shriram is looking to take full advantage. In case you are interested in this sector and are looking to apply for the upcoming public issue, make sure to know different aspects about this company.
So, let’s dive in!
A Quick Glimpse at Shriram Properties
Shriram Properties is a part of Shriram Group, which has been operating in India for more than 40 years. The holding company has managed to build a strong reputation in the financial services space apart from other sectors.
In the Southern part of India, Shriram Properties is one of the leading organizations in relation to real estate development. The company predominantly focuses on the affordable housing segment along with the mid-market category. Shriram Properties also has a presence in luxury housing segments and the office space category. The two vital markets of this company are Chennai and Bangalore.
Strengths of Shriram Properties
Let’s take a look at some of the strengths of Shriram Properties that provide this company with an edge over its industry peers.
- This company is a part of Shriram Group and has the backing of marquee investors.
- Shriram Properties has managed to build strategic relationships.
- The company is in a favourable position from a financial standpoint.
- It has a proven track record in terms of execution.
- Shriram Properties has an asset-light business model that is scalable.
- This company has displayed strong capabilities with regard to project identification.
- Shriram Properties has an efficient and highly experienced management team.
- This company is in a favourable position to take advantage of industrial as well as regulatory developments.
A Quick Look at the Financials of Shriram Properties
The table below represents some of the vital financial highlights in relation to Shriram Properties:
|Financial Year||Total Assets (Rs.)||Overall Revenue (Rs.)||Profit after Tax (Rs.)|
|2017-2018||32,854.38 million||4,197.61 million||3,430.06 million|
|2018-2019||33,713.52 million||7,237.80 million||487.91 million|
|2019-2020||34,042.89 million||6,318.43 million||(863.93 million)|
Investor interest in the property segment has made a strong recovery in recent times. The main factors behind this are the cheaper loan rates and a shift in consumer preference. In case this scenario persists, more investors will show interest in this sector. Considering the strengths of Shriram Properties, it looks well-placed to benefit from the surging demand.
Nevertheless, before subscribing to this initial share sale, make sure to check different aspects regarding this company. These factors include weaknesses, opportunities, threats, and more. Furthermore, you might want to consider doing a competitive analysis.
After taking these factors into account, if you decide to place the Shriram Properties IPO order, you can do so via the Angel One app. In case you don’t have a trading and Demat account, open one right now with Angel One.
Frequently Asked Questions
- Which competitors of this company are already listed on stock exchanges?
Some of the listed peers of this company include Sobha Limited, Oberoi Realty Limited, Brigade Enterprises Limited and Prestige Estates Projects Limited.
- What is the total amount of funds that Shriram Properties has raised till now?
Shriram Properties has raised a total of $177.9 over 4 funding rounds.
- What is the listing date of Shriram Properties IPO?
The company has not yet announced when its shares will get listed on the bourses.
- Is Shriram Properties looking to allow some of its investors to exit partially?
The Chennai-based company intends to allow partial exits to four of its existing shareholders – Tata Capital, Starwood Capital, TPG Capital, and Walton Street Capital.
- Which entities are the promoters of Shriram Properties?
The promoters of this company are M. Murali, Shriram Group Executives Welfare Trust and Shriram Properties Holdings Private Limited.