Shriram Properties to raise Rs 600 cr via IPO, price band set at Rs 113-118

Proceeds to be used to retire debt; company to expand footprint in the south while steering clear of northern and western markets

Days after Shriram Group founder R Thyagarajan lined up the company's succession roadmap through the trust route, group company Shriram Properties is planning to raise around Rs 600 crore via the public issue. The company said that the real estate market has bounced back from the pre-Covid levels now.

It is also planning to expand its footprint in South India and has no plans to foray into the North and Western market. The three-day initial public offering will open on December 8 and conclude on December 10 with its price band fixed at Rs 113-Rs 118 per share of face value Rs 10 each. The IPO includes Rs250 crore of fresh issue and an offer for sale of Rs 350 crore. At the upper end of the price cap, the companies market cap is expected to be around Rs 2,000 crore

Shriram Properties chairman and managing director M Murali said that the company has no plans to foray into the North or West of India and instead wants to strengthen its position down South. The company is planning to utilise the proceeds towards repayment of debt and general corporate purposes. It has also proposed the partial exit of investors like TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital, who hold 58 per cent stake in the company now.

The company, which has an asset-light model, has reportedly executed 35 projects with a construction space of 47 million square feet so far and has around 29 projects in the pipeline with a construction space of 17 million square feet. Murali said that on a quarterly level residential sales have almost doubled compared to the last financial year on a quarterly basis and may grow beyond the pre-Covid level.