Shriram Properties IPO subscribed 89%

Published on Dec 08, 2021 17:28

The initial public offer (IPO) of Shriram Properties received bids for 2,60,79,375 shares as against 2,93,51,639 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (8 December 2021). The issue was subscribed 89%.

The issue opened for bidding today, 8 December 2021 and it will close on 10 December 2021. The price band of the IPO is fixed at Rs 113-118. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

The offer comprises 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.