Shriram Properties files draft papers to raise ₹800 crore via IPO

Shriram Properties Ltd will use proceeds from the issue to reduce debt of the company. Photo: iStockPremium
Shriram Properties Ltd will use proceeds from the issue to reduce debt of the company. Photo: iStock
 2 min read . Updated: 10 Apr 2021, 11:19 AM IST Ravindra N. Sonavane

MUMBAI: Shriram Properties Ltd has filed a draft red herring prospectus with Securities Exchange Board of India to raise nearly ₹800 crore via an initial public offering (IPO).

The IPO comprises a fresh issue of ₹250 crore and an offer for sale (OFS) of up to ₹550 crore by current shareholders and promoters.

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The offer for sale consists sale of ₹147.10 by Omega TC Sabre Holdings Pte Ltd, ₹13 crore by Tata Capital Financial Services Ltd, ₹148.90 crore by TPG Asia SFV Pte. Ltd and ₹216 crore by WSI/WSQI V (XXXII) Mauritius Investors.

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 December 2020, the amount outstanding under its fund-based loan facilities was at Rs693.17 crore.

As of March 2020, Omega TC Sabre Holdings Pte Ltd holds a 16.33% stake in the company, TPG Asia SFV Pte Ltd holds a 16.56% stake, and WSI/WSQI V (XXXII) Mauritius Investors hold a 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 2020, the company posted a revenue of ₹571.96 crore versus ₹650.13 crore a year ago. Net loss for the year stood at ₹65.02 crore against ₹86.39 crore last year.

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As of December 2020, the company have 29 completed projects, representing 16.76 million sq. ft 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

Shriram Properties Ltd focuses on affordable and mid-income housing projects, mainly in southern India. It saw sales recover to pre-covid levels in the December quarter.

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