India’s Shriram Properties fixes IPO float price band
By Vinu Lal
13:56, 6 December 2021
Indian real estate developer Shriram Properties has fixed a price band of INR113–INR118 per share for its initial stake sale to the public, which will open for subscription on 8 December, according to a press statement issued by the firm.
The company would raise up to INR6bn ($79.6m) at the upper end of the price band through an initial public offering (IPO).
The IPO comprises a fresh issue of shares of up to INR2.5bn and an Offer For Sale (OFS) totalling up to INR3.5bn.
Existing investors, such as Omega TC Sabre Holdings, are looking to raise up to INR909.5m, Tata Capital Financial Services up to INR83.4m, TPG Asia SF Pte up to INR922.1m and WSI/WSQI V (XXXII) Mauritius Investors up to INR1.34bn through the IPO.
Other shareholders would also tender their shares through the IPO, according to the Red Herring Prospectus (RHP or initial papers) filed with the domestic market regulator.
The IPO also includes a reservation of up to INR30m for employees. The firm would also look at raising funds from private investors a day prior to the IPO.
The firm, a part of the south Indian city of Chennai-based business conglomerate Shriram Group, intends to use INR2bn of the proceeds to repay debt of the company and its subsidiaries. A yet-to-be decided amount would be used for general business purposes.
For the financial year ended 31 March 2021, Shriram Properties posted a net loss of INR681.78m, compared with a net loss of INR863.9m recorded during the same period a year ago. During the period under review, the real estate developer’s revenue from operations fell to INR4.32bn from INR5.72bn recorded a year ago.
Following the IPO, the firm intends to list its shares both on the BSE and the National Stock Exchange of India.
Axis Capital, ICICI Securities and Nomura Financial Advisory and Securities (India) Private are the managers to the issue.