Shriram Properties Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Shriram Properties IPO

Shriram Properties IPO: Key Details

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Company Information

Shriram Properties Limited, incorporated in 2000, is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. They are among the top five residential real estate companies in South India in terms of the number of units launched between the calendar years 2012 and the third quarter of 2021 across Tier 1 cities of South India
including Bengaluru, Chennai, and Hyderabad. They are also present in the mid-market premium and
luxury housing categories as well as commercial and office space categories in our core markets.

They are part of the Shriram Group, which is a prominent business group with four decades of operating history in India and a well-recognized brand in the retail financial services sector and several other industries. They believe that its relationship with the Shriram Group provides us with strong brand recall and that they benefit, and will continue to benefit, from the trust and confidence that homebuyers, lenders, financial investors, landowners, development partners, contractors, and other stakeholders
place in the Shriram brand and its operational history.

Competitive Strengths

  • Part of the Shriram Group and Backed by Marquee Investors
  • One of the Leading Residential Real Estate Development Companies in South India with Focus on Midmarket and Affordable Housing Categories
  • Demonstrated Capabilities in Project Identification and Strong Execution Track Record
  • Established Strategic Relationships
  • Scalable and Asset Light Business Model supported by our Strong Financial Position
  • Well Positioned to Benefit from Regulatory and Industry Developments
  • Experienced and Professional Management Team

Company Strategy

  • Continued Focus on Mid-Market and Affordable Housing Categories
  • Continued Focus on Key Cities in South India
  • Strengthen Presence in the Plotted Development Category
  • Focus on Asset Light Business Model, Primarily through Development Management
  • Develop and Monetize the Project in Kolkata
  • Build Scale, Consolidate Position and Enhance Execution Capabilities

Proceeds from Shriram Properties IPO will be used to:

  • Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company and its subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram; and
  • General corporate purposes, subject to applicable laws.

Shriram Properties IPO: Financials

201920202021 Mar2021 June
Revenue from Ops₹650.13 Cr₹571.96 Cr₹431.50 Cr₹118.57 Cr
Prof Before Exp. Items₹(30.04) Cr₹(39.17) Cr₹(10.83) Cr₹(30.28 Cr
Profit after Tax₹91.94 Cr₹(40.72) Cr₹(12.00) Cr₹(34.27) Cr
EPS (Basic)3.39(5.80)(4.60)(4.60)
₹ in Crores, except EPS

EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS(2.10)
* Weighted Average for last 3 years

Shriram Properties IPO: Comparison with listed industry peers

Price to EarningsEPS (Avg*)P/E
Shriram Properties(2.10)[●]
Highest (Sunteck)2.98160.64
Lowest (Godrej)(7.48)[●]
* Weighted Average for last 3 years

Shriram Properties IPO Dashboard

Issue Details

TypeValue
Issue Size₹600 Cr
Fresh Issue₹250 Cr
Offer for Sale₹350 Cr
Face Value₹10/- per Equity Share
IPO Price₹113 – ₹118
Lot Size 125 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open8/12/2021
Bid Close10/12/2021
Allotment Finalization15/12/2021
Initiation of Refunds16/12/2021
Credit of Shares17/12/2021
Listing Date20/12/2021

Lot Size and Price

LotsSharesAmount
135₹14,750
13455₹1,91,750

Promoter Holding

HoldingPercentage
Pre-Issue31.98%
Post-Issue

Shriram Properties IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%
NII15%
RII (Retail)10%
Employees
Total100%

Shriram Properties IPO: Risks

  • Fluctuations in market conditions may affect the ability to sell projects at expected prices, which may adversely affect revenues and earning
  • Their real estate development activities are geographically concentrated in key cities in South India.
  • One of the independent Directors, K.G. Krishnamurthy is a director on the board of companies engaged in a similar line of business
  • They have a significant amount of debt, which could affect our ability to obtain future financing or pursue our growth strategy
  • The company and some of its subsidiaries have unsecured loans that may be recalled by the lenders at any time

For complete internal and external risk factors, you can refer to the RHP of the company.

Shriram Properties IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

  • Axis Capital Limited
  • ICICI Securities Limited
  • Nomura Financial Advisory and Securities (India) Private Limited

Phone: +91 22 4325 2183
Email: [email protected]

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