Shriram Properties is a part of the Shriram Group and is one of the leading residential real estate development companies in South India. The company primarily focuses on the mid-market and affordable housing segments and is all set to make a debut on the stock market with an issue size of 600cr.
Shriram Properties Limited IPO Overview
| Shriram Properties Limited IPO Issue Date | 8 – 10 December 2021 |
| Shriram Properties Limited IPO Opening Date | 8 December 2021 |
| Shriram Properties Limited IPO Face Value | INR 10 per share |
| Shriram Properties Limited IPO Price | INR 118 per share |
| Shriram Properties Limited IPO Lot Size | 125 Shares |
| Issue Size | 600 Cr |
| Offer for sale | 350 Cr |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not less than 75% of the Net offer |
| NII (HNI) Shares Offered | Not more than 15% of the offer |
| Retail Shares Offered | Not more than 10% of the Net offer |
| Company Promoters | M. Murali, Shriram Properties Holdings Private Limited and Shriram Group Executives Welfare Trust are the company promoters. |
Shriram Properties Limited IPO Tentative Dates
| Shriram Properties Limited IPO opening date | 8 December 2021 |
| Shriram Properties Limited IPO closing date | 10 December 2021 |
| Basis of Allotment | 15 December 2021 |
| Initiation of Refunds | 16 December 2021 |
| Credit of Shares to Demat | 17 December 2021 |
| Shriram Properties Limited IPO Listing Date | 20 December 2021 |
Shriram Properties Limited IPO Industry Overview
Real estate is one of the most recognized sectors and the same being the single largest contributor to the GDP under the services sector, sustained growth in GDP over the next 4-5 years is expected to contribute to the growth of real estate as well. Being the second largest employer (next only to agriculture) and with ongoing reform initiatives, it is inevitable for the Government of India to keep the focus on real estate to ensure sustained growth of GDP. The impact can be directly witnessed in the core real estate segments in terms of an increase in the graded commercial /office space absorption, residential launches and sales, growth of organized retail, and consistent growth in other sectors like warehousing and industrial. The policy reforms like GST have further catalyzed the growth in the logistics/warehousing sector leading to more employment opportunities, which in turn has contributed to the increase in residential demand, not only to urban areas, and slowly penetrating semi-urban and rural areas as well.
Shriram Properties Limited IPO Company Overview
Shriram Properties are one of the leading residential real estate development companies in South India, primarily focused on the mid-market 1 and affordable housing categories. They are among the five largest residential real estate companies in South India in terms of the number of units launched between 2015 and 2020 across Tier 1 cities of south India including Bengaluru and Chennai. They are present in the mid-market premium and luxury housing categories as well as commercial and office space categories in their core markets.
They are part of the Shriram Group, which is a prominent business group with four decades of operating history in India and a well-recognized brand in the retail financial services sector and several other industries. They believe that their relationship with the Shriram Group provides us with strong brand recall and that they benefit, and they continue to benefit, from the trust and confidence that home buyers, lenders, financial investors, landowners, development partners, contractors and other stakeholders place in the Shriram brand and its operational history.
They commenced operations in Bengaluru in the year 2000 and have since expanded their presence to other cities in South India, i.e., Chennai, Coimbatore and Visakhapatnam. They also have presence in Kolkata in East India, where they are developing a large mixed-use project. Bengaluru and Chennai are two key markets for us. These cities are among two key residential housing markets in India, contributing to approximately 29.70% of the launches in India, between calendar years 2012 and 2020 and 28.57% of the sold inventory in India between calendar years 2018 and 2020.
Shriram Properties Limited IPO Objectives
- Repayment and pre-payment, in full or part, of certain borrowings availed by the company and its subsidiaries, Shri prop Structures, Global Entropies and Bengal Shriram.
- General corporate purposes.
Shriram Properties Limited IPO Financial Statements
| Particulars | 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 |
| Total Assets | 32,933.63 | 32,994.87 | 34,173.03 | 33,656.31 |
| Total Revenue | 1,551.50 | 5,013.08 | 6,318.43 | 7,237.80 |
| Profit After Tax | – 600.33 | – 681.78 | – 863.93 | 487.91 |
Shriram Properties Limited IPO Strengths
- One of the leading residential real estate development companies in South India
- Proven capabilities in project identification and execution
- Well-positioned to benefit from regulatory and industry developments
- Scalable and asset-light business.
- Shriram group is funded by Marquee global and domestic financial investors across several of its businesses.
Shriram Properties Limited IPO Weakness
- Key developments are geographically concentrated in key cities in south India.
- Dependency on the performance of the real estate market in south India.
- Delay in completing the ongoing projects under development and forthcoming projects.
- Changing laws, rules, regulations and legal uncertainties, including the withdrawal of certain benefits or adverse application of tax laws in the Indian real estate sector.
Company Contact Information
Shriram Properties Limited
Lakshmi Neela Rite Choice Chamber, New No. 9,
Bazullah Road, T. Nagar, Chennai 600017,
Tamil Nadu, India
Phone: +91 44 4001 4410
Email: cs.spl@shriramproperties.com
Website: https://www.shriramproperties.com/
Shriram Properties IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: murali.m@kfintech.com
Website: https://karisma.kfintech.co
Shriram Properties IPO Lead Manager(s)
- Axis Capital Limited
- ICICI Securities Limited
- Nomura Financial Advisory And Securities (India) Pvt Ltd
