Shriram Properties IPO ends with decent subscription

Published on Dec 13, 2021 08:34

The initial public offer (IPO) of Shriram Properties received bids for 13,51,21,875 shares as against 2,93,51,639 shares on offer. The issue was subscribed 4.60 times.

The retail investors category was subscribed 12.72 times. The non institutional investors category was subscribed 4.82 times. The qualified institutional buyers category was subscribed 1.85 times.

The issue opened for bidding on 8 December 2021 and it closed on 10 December 2021. The price band of the IPO was fixed at Rs 113-118.

The offer comprised of the fresh issue of upto Rs 250 crore and and offer for sale of upto Rs 350 crore.

The proceeds from offer for sale will go to investor selling shareholders and other selling shareholders. Of the fresh issue proceeds, the company proposes to repay/pre-pay in full or part of certain borrowing availed by the company or subsidiaries to the tune of Rs 200 crore and balance is for general corporate purposes.

Ahead of the IPO, Shriram Properties on Tuesday, 8 December 2021, finalized allocation of 2,27,66,949 equity shares to anchor investors at Rs 118 per share, aggregating to Rs 268.65 crore.

Shriram Properties, a part of Chennai based Shriram Group, is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. It is also present in the mid-market premium and luxury housing categories as well as commercial and office space categories in its core markets.

The company as of 30 September 2021, has completed 29 Projects (representing 16.76 million square feet of saleable area) and of this about 24 completed projects (accounting 90.56% of saleable area) are in the cities of Bengaluru and Chennai.

The real estate company reported a net loss of Rs 68.28 crore on sales of Rs 118.18 crore in the six month ended September 2021.