Shriram Properties to unveil ₹600-cr. IPO on Dec. 8

Shriram Properties Ltd. has announced the opening of an initial public offering (IPO) on December 8, at a price band of ₹113-118 per equity share. Bids can be made for a minimum of 125 equity shares and in multiples of 125 shares thereafter.

The IPO comprises issuance of equity shares aggregating up to ₹600 crore, which includes a fresh issue of up to ₹250 crore and an offer-for-sale aggregating up to ₹350 crore.

The company proposes to utilise the net proceeds from the fresh issue towards funding repayment and/ or pre-payment, in full or part, of certain borrowings availed by it and its subsidiaries Shriprop Structures, Global Entropolis and Bengal Shriram amounting to ₹200 crore and general corporate purposes.

Murali M, CMD, Shriram Properties, said,”We are transitioning from a real estate development model to a combination of real estate development and real estate services based business model, with a shift towards an asset light business strategy. Historically, in addition to owned projects, we have sought to develop our projects either through joint-development agreements or joint ventures with landowners of the proposed projects, and in certain cases, with financial investors, in order to reduce up-front costs, while leveraging our brand name and execution experience.

“In addition, as an extension of our asset light business model, in recent years, we have focused on the development management business, whereby we provide end-to-end real estate development services to smaller real estate developers and other landowners in relation to timely and quality execution, branding, marketing and sales, collections and client management and facilitating financing arrangements,” he said.

“We believe that our strong brand and reputation, development track record, industry knowledge and know-how of the regulatory environment in key cities in South India and in our chosen real estate categories, has led to a position of market leadership,” he added.

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Printable version | Jan 28, 2022 5:55:41 AM |

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