Shriram Properties aims to launch Rs 800 crore-IPO before end of August

Bengaluru-based Shriram Properties is likely to launch its initial public offer before the end of August to raise up to Rs 800 crore.

In April, the company filed the Draft Red Herring Prospectus (DRHP) to raise up to Rs 800 crore through an Initial Public Offer (IPO).

Earlier this month, the company got the observations from markets regulator Sebi with respect to the DRHP.

According to sources, Shriram Properties plans to hit the capital market by the end of July or early August.

As per the DRHP, the company proposes to raise up to Rs 800 crore through the IPO, comprising Rs 250 crore through fresh issue of equity shares and Rs 550 crore through offer for sale.

Shriram Properties has proposed partial exits to its four existing investors -- TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital -- which hold around 58 per cent stake in the company.

The company proposes to utilise the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes.

Shriram Properties has a major presence in South India. It has completed various real estate projects and many projects are under construction.

Despite the COVID pandemic, the Indian real estate sector has witnessed two successful public issues of the Real Estate Investment Trusts (REITs).

Mindspace Business Parks REIT, owned by K Raheja, was listed in August 2020 after raising Rs 4,500 crore while global investment firm Brookfield's REIT, which mopped up Rs 3,800 crore, got listed in February this year.

Macrotech Developers, erstwhile Lodha Developers, raised Rs 2,500 crore through its IPO in April.