Shapoorji Pallonji Real Estate Pvt. Ltd. (SPRE) has undergone an important leadership reshuffle as the company gears up for a planned initial public offering (IPO). The restructuring, which includes the appointment of two new Chief Executive Officers (CEOs), aims to strengthen the company's leadership and prepare it for future growth.
Sriram Mahadevan, currently the Managing Director of SPRE's mid-income housing platform, Joyville, will now take on the additional CEO role at SPRE. Sumit Sapru, who previously served as the business head of SPRE, will also assume the position of CEO. Both CEOs will report directly to Venkatesh Gopalakrishnan, who has shifted from his previous position as Managing Director and CEO to become the Managing Director of SPRE and a director in the group promoter's office. This leadership change reflects a broader effort to align the company's management structure with its expansion goals.
The reshuffle is pivotal for Shapoorji Pallonji Group, which is preparing to list its real estate arm on the stock market. With its long history in infrastructure and energy, the group is now focusing on real estate as one of its key growth sectors. The restructuring is designed to ensure that the company's operations are more streamlined and responsive as it moves forward with its IPO plans.
Under the new structure, Mahadevan and Sapru will oversee different projects, each managing their operational profit and loss statements. Both will share responsibility for the broader real estate portfolio, a move intended to provide greater operational efficiency while preparing SPRE for the upcoming public listing. Gopalakrishnan will focus on overseeing the IPO process and ensuring the company's long-term sustainability. His role will also include maintaining relationships with shareholders and other stakeholders to inform them about the company's direction and progress.
The leadership changes come after SPRE was established as a standalone real estate holding company in July last year. Before this restructuring, the Shapoorji Pallonji Group developed residential projects under its brand, with mid-income housing projects under Joyville and office parks under SP Infocity. SPRE now consolidates all the group's real estate assets under one umbrella. The company now controls around 45 land parcels and ongoing projects across India, including major markets like Mumbai, Pune, Bengaluru, Gurugram, and Kolkata.
The restructuring reflects the company's ambition to scale its operations and compete with established players in India's real estate sector. SPRE is targeting an IPO within the next two years, aiming to raise between $800 million and $900 million by initially selling 10-12% of its stake. Further stake dilution is expected to bring the public float up to 25%, with the company hoping to raise around $2 billion.
SPRE's real estate portfolio is valued at approximately Rs 50,000 crore, and the group controls nearly 2,000 acres of land in prime property markets. These assets have the potential to support around 140 million square feet of development. The group's ambitious plans include launching more than a dozen new projects and a turnover goal of $1 billion by 2025-26.
As SPRE moves towards its IPO, it will need to secure additional funding, potentially through non-core land sales or project-level funding, should the IPO timeline be delayed. Industry experts suggest that, like other fast-growing real estate companies, SPRE's success will rely on its ability to manage its projects efficiently and make the right investments in talent and leadership.
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