IPO: Shriram Properties

Real estate company Shriram Properties has received authorization from the Securities Exchange Board of India for an Initial Public Offering (IPO). The company aspires to raise capital of Rs. 1,250 crore by means of an IPO issue. The company had approached SEBI for the approval in December 2018 and received the same this month, on April 9, 2019.

Based on the draft papers, the IPO is composed of a fresh issue aggregating up to Rs. 250 crore. It also consists of an offer for sale of up to 4,24,03,271 shares by the existing shareholders, which include Tata Capital Financial Service and TPG Asia.

Shriram Properties is also contemplating a pre-IPO placement of up to Rs. 100 crore. The IPO size is estimated to be around Rs. 1,250 crore. The capital generated will be utilized for the repayment of certain borrowings availed by the company and its subsidiaries for funding general corporate activities.

The public issue will be managed by Axis Capital, Edelweiss Financial Services, JM Financial and Nomura Financial Advisory and Securities. The equities will be listed on the BSE and NSE.

Shriram Properties is part of the Shriram Group and is a renowned property developer in South India. It has delivered over 12.5 million sqft and has a potential for a further 54.76 million sqft, including ongoing developments.