Indian realty developer Shriram Properties to file draft papers for $100m IPO soon

Shriram Properties Pvt. Ltd plans to file a draft prospectus in the next few weeks for an initial public offering to raise about 800 crore, said two people familiar with the development.

The Bengaluru-based developer plans to use the proceeds of the share sale to retire a part of its 600 crore debt and offer partial exits to existing investors Walton Street Capital, Starwood Capital Group, Tata Capital Ltd and TPG Capital, one of the two people cited above said requesting anonymity.

The share sale will come at a time when the IPO of Macrotech Developers Ltd, which operates under the Lodha brand, has garnered strong investor interest. Canadian alternative investment major Brookfield Asset Management Inc., US-based private investment management firm Wellington Management Co., Abu Dhabi Investment Authority (ADIA), Ivanhoe Cambridge and HDFC Mutual Fund are likely to be among the anchor investors in the 2,500 crore Macrotech IPO that will launch on Wednesday.

“Shriram Properties is planning to file the DRHP soon. There is a lot of positive buzz around the Macrotech IPO; home sales have improved post covid and the company thinks it’s a good time to file its DRHP to monetize a surge in demand for primary market offerings,” said the second person cited above.

A Shriram Properties spokesperson did not respond to queries.

The Shriram group company had received approval from the Securities and Exchange Board of India for an IPO in 2019. The company had in 2018-19 intended to raise 1,250 crore through the offering, which it pared to 750 crore last year.

Mint reported in February that Shriram Properties plans to refile its draft share sale documents soon.

The developer, which focuses on affordable and mid-income housing projects, mainly in southern India, saw sales recover to pre-covid levels in the December quarter.

It has lined up several projects for launch this year across Bengaluru and Chennai.

Meanwhile, Macrotech Developers’ managing director Abhishek Lodha said in a virtual pre-IPO conference on Monday that the firm plans to cut net debt by 24% to 12,700 crore after the share sale. He also said that the company has completed investments in the London market with the development of two properties, and will now focus only on the Indian market.

The 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).

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

  • 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.