Shriram Properties Limited (SPL), one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories, filed its Draft Red Herring Prospectus (DRHP) with SEBI.
The Initial Public Offering (IPO) comprises of Shriram Properties Limited (“Company” or “Issuer”) comprising of a fresh issue aggregating up to Rs. 2,500 million (the “Fresh Issue”) and an offer for sale of up to 42,403,271 equity shares comprising of up to 11,243,964 equity shares by Omega TC Sabre Holdings Pte. Limited; up to 1,031,557 equity shares by Tata Capital Financial Services Limited; up to 11,398,698 equity shares by TPG Asia SF V Pte. Ltd.; up to 16,502,880 equity shares by WSI/WSQI V (XXXII) Mauritius Investors Limited (collectively, the “Investor Selling Shareholders”) and up to 2,226,172 equity shares by certain other selling shareholders. The offer includes a reservation for subscription by eligible employees i.e. the employee reservation portion.
The Company and the Investor Selling Shareholders may, in consultation with the Book Running Lead Managers (BRLMs), consider a pre-offer placement of an aggregate amount not exceeding Rs. 1,000 million (Pre-IPO Placement). The Pre-IPO placement will be at a price to be decided by the company and the investor selling shareholders in consultation with the book running lead managers (“BRLMs”) and the Pre-IPO placement will be undertaken prior to filing of the red herring prospectus with the ROC. If the Pre-IPO placement is undertaken, the number of equity shares issued pursuant to the Pre-IPO placement will be reduced from the fresh issue, subject to the minimum offer size constituting at least 10% of the post-offer paid-up equity share capital of our company.
The Company proposes to utilize the Net Proceeds raised through the Fresh Issue for the repayment and/or pre-payment, in full or part, of certain borrowings availed by SPL or certain subsidiaries and for general corporate purposes.
Axis Capital Limited, Edelweiss Financial Services Limited, JM Financial Limited and Nomura Financial Advisory and Securities (India) Private Limited are the BRLMs to the offer.
The equity shares will be listed on BSE and NSE.
About Shriram Properties Limited
SPL is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. SPL is among the five largest residential real estate companies in South India, including specifically in Bengaluru and Chennai, in terms of number of aggregate units launched in the calendar years 2015 to 2018 and the six months ended June 30, 2018 (Source: JLL). SPL is also present in the mid-market premium and luxury housing category, commercial and office space category as well as plotted development category.