Here is Your Guide To Shriram Properties IPO
Here we go, again! The years 2021 and 2022 are going to be a ride for companies going public. In the recent past, Nykaa and PB Fintech went public and there are a few more companies lined up to be listed for IPOs this year. One such company is Shriram Properties. This article answers your questions about Shriram Properties IPO, the company overview, strengths, and risks associated with it to help you make a better investment decision.
About Shriram Properties
One of the five largest residential real estate development companies in South India, Shriram Properties, essentially focuses on the affordable and mid-market housing categories. Shriram Properties are a part of Shriram Group, which is a business group in the retail financial services sector and various other industries.
Shriram Properties commenced operations in the year 2000 in Bangalore and later grew their presence in other cities of South India such as Chennai, Coimbatore and Vishakapatnam. Though they have a presence in Kolkata, their two key markets are Bangalore and Chennai. The company is transitioning from a real estate development model to a combination of real estate development and a real estate services-based business model. This also includes a shift towards an asset-light business strategy.
About Shriram Properties IPO
- Shriram Properties IPO includes a fresh issue worth Rs. 250 cr. and an offer for sale worth Rs. 550 cr. The overall issue size is Rs. 800 cr.
- The opening date of Shriram Properties IPO is yet to be announced.
- Shriram Properties IPO is likely to be listed on the BSE and NSE.
- The face value of each share is Rs. 10 and the set price band of Shriram Properties IPO is yet to be announced.
- The bid lot size is also yet to be revealed by the company.
Book running lead managers of the Shriram Properties IPO
The joint coordinators and lead managers of Shriram Properties IPO are Axis Capital Limited, ICICI Securities Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd.
The issue’s registrar is KFin Technologies Private Limited.
Reservation for various investor categories for Shriram Properties IPO
- 10% is the maximum subscription amount reserved for retail investors.
- 15% is reserved for Non-Institutional bidders.
- 75% is reserved for Qualified Institutional Buyers (QIBs), which includes 60% for anchor investors and 1/3rd of the anchor investor portion for domestic mutual funds.
Objects of Shriram Properties IPO
Funds from Shriram Properties IPO will be used for
- Repayment or prepayment, in full or part, of certain borrowings made by Shriram Properties and their subsidiaries, Shriprop Structures, Global Entropolis, and Bengal Shriram.
- Towards general corporate purposes, but not more than 25% of the gross proceeds of the fresh issue. These purposes include working capital requirements, investment in subsidiaries and joint ventures, strengthening of marketing capabilities, and strategic initiatives.
Continue to read the financials, peers, strengths and risks of Shriram Properties.
