Shriram Properties Limited, one of the leading residential real estate development companies in South India initial public offering (IPO) saw strong response on the second day of bidding. Till noon, Shriram Properties IPO has been fully subscribed 1.24 times with retail category overbooked 6.78 times and NIIs bid 0.05x, BSE data showed.
Incorporated in 2000, Shriram Properties is part of the Shriram Group, which is a prominent business group with four decades of operating history in India and a well-recognised brand in the retail financial services sector and several other industries. Shriram Properties is primarily focused on the mid-market and affordable housing categories. It is among the top five residential real estate companies in south India, As of September 30, 2021, it has 29 completed projects, representing 16.76 million square feet of saleable area, out of which its 24 completed projects in the cities of Bengaluru and Chennai accounted for 90.56 per cent of its saleable area.
Shriram Properties IPO will be open for subscription from December 8-10. The price band of the issue has been fixed at Rs 113 to Rs 118 per equity share, with a face value of Rs 10 each. Shriram Properties IPO comprised of a fresh issue worth Rs 250 crore and an offer for sale by existing shareholders worth Rs 350 crore. Investors including Omega TC Sabre Holdings Pte Ltd , Tata Capital Financial Services , TPG Asia SF V Pte Ltd, and WSI/WSQI V (XXXII) Mauritius Investors will drop their shares during the offer. Other shareholders will also drop Rs 25 crore during the issue. The Shriram Properties IPO is likely to fetch Rs 600 crore at the upper price band.
The company will use the proceeds from the fresh issue for repayment and/ or pre-payment, in full or part, of certain borrowings availed by it and its subsidiaries. The fund will also be used for general corporate purposes.
Shriram Properties shares were commanding a premium (GMP) of Rs 10 in the grey market.
Shriram Properties was bringing the issue at price band of Rs 113-118 per share at p/b multiple of 2.11 on FY21 book value basis.
“Going forward, the company intends to continue to strengthen its reputation and track record in the mid-market and affordable housing categories. It plans to focus on key cities in south India and also develop and monetize its project in Kolkata. It intends to consolidate its leadership in core markets through focused efforts on sales and marketing and customer service, as well as efforts
to manage costs efficiently. It also aims to further scale up and enhance its execution and in-house capabilities for project planning and monitoring. We are constructive on the company’s long term growth prospects given the
current positive industry growth trends and Shriram’s strong brand presence and execution track record. However, improvement in financials would remain a key monitorable for the company,” said Religare Broking in a note.
Read all the Latest Business News here
Comments
0 comment