Shapoorji Pallonji to take its real-estate arm public in 2 years: Report

In the first phase, Shapoorji Pallonji Real Estate aims to raise around $800-900 million through an IPO of about 10-12 per cent stake

In a bid to consolidate its real estate holdings across key cities, the Mumbai-headquartered conglomerate Shapoorji Pallonji Group has formed a new holding company — Shapoorji Pallonji Real Estate (SPRE). The conglomerate also plans to launch an initial public offering (IPO) of the company, according to a report in The Economic Times.
 

“Creating a unified holding company and consolidating assets under this entity is in line with our strategic vision to streamline operations and enhance value creation. To drive operational efficiencies and foster greater growth opportunities, we are positioning SPRE to leverage its scale by bringing our diverse real estate portfolio together,” Venkatesh Gopalakrishnan, managing director and chief executive of SPRE, told The Economic Times.
 

Gopalakrishnan said the portfolio has a total revenue potential of up to Rs 2 trillion after development. The group is considering taking the new company public in two years. In the first phase, the company aims to raise around $800-900 million through an IPO of about a 10-12 per cent stake. Further dilutions could follow, the report added, taking the total fundraising to around $2 billion.
 

The portfolio comprises land parcels spread over 2,000 acres, with the value of the land estimated to be around $6 billion. The holding company covers 45 land parcels and projects, with a total development potential of 140 million square feet, according to the report. 
 

Projects totalling 22 million square feet are currently under development. The assets are primarily in five major cities – Mumbai, Pune, Bengaluru, Gurugram, and Kolkata. It also holds large land parcels in Mysuru and Nagpur.
 

Shapoorji Pallonji Real Estate caters to both affordable and luxury housing, and has around Rs 6,500 crore of debt.