India’s Shriram Properties files IPO papers to raise $35.6m

Photo by Isaac Benhesed on Unsplash

Bengaluru-based real estate developer Shriram Properties Ltd on Monday filed draft documents with markets regulator, Securities and Exchange Board of India (Sebi), for an initial public offering (IPO). The company, part of the Shriram Group, plans to raise up to ₹250 crore in fresh capital through the IPO, according to the draft red herring prospectus (DRHP) available on the website of merchant bankers managing the share sale.

The overall size of the Shriram Properties IPO is expected to be around ₹1,200 crore as several existing investors plan to pare their holdings through the share sale, said one person aware of the development, requesting anonymity.

Starwood Capital, Tata Capital Financial Services Ltd, TPG Asia and Mauritius Investors Ltd will collectively offer to sell 42.4 million shares in the Shriram Properties IPO.

Shriram plans to use the proceeds to repay debt, which would include loans availed by its units Shriprop Structures, Global Entropolis and Bengal Shriram.

Mint reported on 19 October that Shriram Properties was planning to file for its IPO by December.

Axis Capital, Edelweiss Financial Services, JM Financial and Nomura are managing the IPO.

The South India-focused developer has residential and commercial properties in Bengaluru, Chennai, Coimbatore, Vizag and Kolkata. As on 30 November, Shriram Properties’ portfolio comprises 25 completed projects spread across 12.86 million sq. ft. Bengaluru and Chennai comprise nearly 88% of its saleable area.

Shriram Properties is not the only real estate company looking to go public. In April, Mumbai-based real estate developer Lodha Developers Ltd had filed its draft prospectus for an IPO, which will see the company raise ₹3,750 crore in primary capital, and an offer for sale by promoters. In June, Puranik Builders Ltd, a major real estate developer with projects in Mumbai and Pune, filed the draft prospectus for a ₹810-crore IPO.

In 2010, several private real estate firms, including DB Realty Ltd, Prestige Estates Projects Ltd, Oberoi Realty Ltd and Nitesh Estates Ltd and Man Infraconstruction Ltd, had collectively raised around ₹4,275 crore through IPOs.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.