Mumbai: Bengaluru-based real estate developer Shriram Properties Ltd on Monday filed draft documents with markets regulator, Securities and Exchange Board of India (Sebi), for an initial public offering (IPO). The company, part of the Shriram Group, plans to raise up to ₹ 250 crore in fresh capital through the IPO, according to the draft red herring prospectus (DRHP) available on the website of merchant bankers managing the share sale.
The overall size of the Shriram Properties IPO is expected to be around ₹ 1,200 crore as several existing investors plan to pare their holdings through the share sale, said one person aware of the development, requesting anonymity.
Starwood Capital, Tata Capital Financial Services Ltd, TPG Asia and Mauritius Investors Ltd will collectively offer to sell 42.4 million shares in the Shriram Properties IPO.
Shriram plans to use the proceeds to repay debt, which would include loans availed by its units Shriprop Structures, Global Entropolis and Bengal Shriram.
Mint reported on 19 October that Shriram Properties was planning to file for its IPO by December.
Axis Capital, Edelweiss Financial Services, JM Financial and Nomura are managing the IPO.
The South India-focused developer has residential and commercial properties in Bengaluru, Chennai, Coimbatore, Vizag and Kolkata. As on 30 November, Shriram Properties’ portfolio comprises 25 completed projects spread across 12.86 million sq. ft. Bengaluru and Chennai comprise nearly 88% of its saleable area.
Shriram Properties is not the only real estate company looking to go public. In April, Mumbai-based real estate developer Lodha Developers Ltd had filed its draft prospectus for an IPO, which will see the company raise ₹ 3,750 crore in primary capital, and an offer for sale by promoters. In June, Puranik Builders Ltd, a major real estate developer with projects in Mumbai and Pune, filed the draft prospectus for a ₹ 810-crore IPO.
In 2010, several private real estate firms, including DB Realty Ltd, Prestige Estates Projects Ltd, Oberoi Realty Ltd and Nitesh Estates Ltd and Man Infraconstruction Ltd, had collectively raised around ₹ 4,275 crore through IPOs.