Shriram Properties IPO closes with 4.6x subscription on retail push

The company had priced its IPO at Rs 113-118 a share. Offer consisted of a fresh issue of Rs 250 crore and an OFS of Rs 350 crore

\The initial public offer (IPO) of Shriram Properties was subscribed 4.6 times on Friday, the concluding of its issue. The institutional bucket was subscribed  1.85 times, the high net worth individual portion (HNI) by 4.82 times, the retail investor portion by 12.7 times and the portion reserved for employees was subscribed by 1.25 times.  

The company had priced its IPO between  Rs 113 to Rs 118 per share. The IPO comprised  a fresh issue of Rs 250 crore and an offer for sale (OFS) of Rs 350 crore.

Through the IPO, the company was seeking valuations of about Rs 2,000 crore.

The company proposes to utilise the proceeds from the fresh issue towards repayment of borrowings taken by the company and its subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram.

Shriram Properties is a residential real estate development company based in South India, primarily focused on mid-market and affordable housing.

The company is part of the Shriram Group, which is focused on retail financial services sector.

The company commenced operations in Bengaluru in the year 2000 and have since expanded its presence to other cities in South India,  Chennai, Coimbatore and Visakhapatnam. The company also has a presence in Kolkata, developing a large mixed-use project.

As of September 30, 2021, the company has  29 completed projects, representing 16.76 million square feet of saleable area. Their 24 completed projects in the cities of Bengaluru and Chennai accounted for 90.56% of its saleable area. In addition, as of September 30, 2021, the company has a total portfolio of 35 projects in ongoing Projects, projects under development and forthcoming projects category aggregating to 46.72 million square feet of estimated saleable area.

Axis Capital, ICICI Securities and Nomura were the bankers to the issue.