Shriram Properties Sets IPO Price Band at Rs 113-118 per Share

Shriram Properties Ltd initial public offering has set price band of ?113-118 a share, valuing the company at ?1,752 crore at the top end of the band. Earlier the firm said that its IPO will open on 8 December for subscription and close on 10 December. The firm plans to list on exchanges on 20 December. The firm has cut its offer for sale size to ?350 crore from ?550 crore earlier. The total IPO size will now be at ?600 crore against ?800 crore earlier. The offer consists of a fresh issue of ?250 crore and an offer for sale of upto 350 crore. This will be the second public listing of a property firm after Macrotech Developers Ltd ?2500 crore IPO in April. The OFS comprises upto ?90.95 crore by Omega TC Sabre Holdings Pte Ltd, upto ?8.34 crore by Tata Capital Financial Services Ltd, upto ?92.21 crore by TPG Asia SF V Pte Ltd, upto ?133.50 crore by Wsi/Wsqi V (XXXII) Mauritius Investors Ltd. The proceeds from the fresh issue of ?200 crore will be used for repayment or pre-payment, in full or part, of certain borrowings availed by the company and its Subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram. As of September 2021, the amount outstanding under its fund-based loan facilities was at Rs695.10 crore. Currently, Omega TC Sabre Holdings Pte Ltd holds 16.33% stake in the company, TPG Asia SFV Pte Ltd holds 16.56% stake, WSI/WSQI V (XXXII) Mauritius Investors holds 23.97% stake. Axis Securities Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities Ltd are the book running lead managers to the issue. For the fiscal year 2021, the company posted a revenue of ?413.50 crore versus ?571.96 crore a year ago. Net loss for the year stood at ?60.03 crore against ?68.18 crore last year. As of Sep 2021, the company have 29 Completed Projects, representing 16.76 million square feet of Saleable Area, out of which our 24 Completed Projects in the cities of Bengaluru and Chennai accounted for 90.55% of our Saleable Area. The developer, who focuses on affordable and mid-income housing projects, mainly in southern India, saw sales recover to pre-covid levels in the December quarter.