Shriram Properties, the real estate arm of Chennai-based Shriram Group, has recently stated that it is going to go for an Initial Public Offer (IPO) after the Union Budget, this year. The company is planning to increase Rs 750-800 crore through the IPO. EaseMyTrip IPO
Shriram Properties IPO Review
M Murali, who is the Chairman & Managing Director, Shriram Properties stated that “Stock market has been going through some rough patch where large caps are doing well while mid- and small-caps are struggling. We plan to float our IPO after the Union Budget,”
The proposed IPO is likely to mobilise money for company’s future expansion as well as is going to help investors moderately dilute the stake.
Shriram Properties, Bengaluru-headquartered real estate arm of Chennai-based Shriram Group, has specified that it is going to firm up strategies to float IPO (initial public offer) after the approaching Union Budget.
Shriram Properties GMP Share Price & Details
It company has increased regulator’s permission for launching its IPO and has validity time till the month of April this year, to go for IPO.
While the company has an approval to raise around Rs 1250 crore through primary as well as secondary markets, considering the present condition, it would be looking at hovering nearby Rs 750-800 crore, Murali added.
About Rs 250 crore would be raised through the primary market, while on the other hand the rest would be raised in the secondary market.
“We have raised around $800 million from private equity capital so far, including the project-based funding. In the holding company, around 58 per cent is held by the private equity investors,” Murali said.
Shriram Properties IPO Allotment Status
In the past three years, the company has seen the growth in its business, It has developed 2.4 million sq ft of real estate in the year 2017-18, about 3.5 million sq ft in 2018-19, in addition to that expects to grow 4 million sq ft for the duration of the present fiscal year. Following year, it would develop 5 million sq ft, he further added.
The company is aiming on reasonable as well as mid-market segments in real estate along with that it has seen growth in office space development.
In addition to that, factors such as demonetisation, Goods and Services Tax (GST) and the Real Estate (Regulation as well as Development) Act, 2016, has also brought in huge changes in the sector as well as at the present date, there are around 50 to 60 large players, who caters to about 90-95 per cent of the market.
The company on the other hand has so far also raised around $800 million from PE investors, which is the highest in a private developer segment.
Murali said the company is going to be able to deliver value to the stockholders as well as the listing is also going to help get funds at a slightly lower cost besides providing more visibility to the brand.
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