Shriram Properties has a major hold and presence in the southern states. So far, it has completed several real estate projects and many are under construction
One of the leading residential real estate development companies in South India, Shriram Properties Limited is all set to open for subscription on 8 December. As per the company rules, the three-day initial public offering (IPO) will end on 10 December.
For its Rs 600-crore maiden issue, Shriram Properties has fixed a price band of Rs 113-118 per share. Investors can bid for a lot of 125 shares, and its multiples later on. Moreover, the shares are expected to list on the exchanges on 20 December.
The IPO comprises of a fresh issue of shares worth Rs 250 crore and an OFS of up to 350 crore. After Macrotech Developers Limited’s Rs 2500 crore IPO in April this year, this will be the second public listing of a property firm.
As per news reports, the firm has reduced its Offer for Sale (OFS) to Rs 350 crore from Rs 550 crore. Currently, the total IPO size will be Rs 600 crore against the earlier value of Rs 800 crore.
As a part of the OFS, Tata Capital Financial Services Limited will sell shares with worth up to Rs 8.34 crore. Omega TC Sabre Holdings Pte Limited will offload shares worth Rs 90.95 crore and Wsi/Wsqi V (XXXII) Mauritius Investors Limited will also sell shares worth Rs 133.5 crore. Apart from that, TPG Asia SF V Pte Ltd will divest shares worth up to Rs 92.21 crore.
For its employees, Shriram Properties will include a reservation of equity shares worth Rs 3 crore. Following that, they will receive those shares at a discount of Rs 11 per share on the final issue price. Furthermore, the company aims to utilize their net proceeds from the fresh issue towards pre-payment or repayment of debts and for general corporate purposes.
Up to 75 percent of the issue size has been reserved for qualified institutional buyers (QIBs), while 15 percent has been set aside for non-institutional investors. Also, the remaining 10 percent is reserved for retail investors.
Shriram Properties has a major hold and presence in the southern states. So far, it has completed several real estate projects and while many are under construction right now.
Amidst the pandemic, the real estate sector in the country has witnessed two successful public issues of the Real Estate Investment Trust (REIT).