Shriram Properties IPO News: Check latest update on Rs 800 crore initial public offer

Shriram Properties IPO News: In a major market development, Bengaluru-based Shriram Properties has filed a draft document with market regulator Sebi to raise up to Rs 800 crore through an initial public offer (IPO). Shriram Properties has filed the draft red herring prospectus (DRHP) and as per the document, the company proposes to raise up to Rs 800 crore through IPO. Out of the total IPO size, it plans to raise Rs 250 crore through fresh issue of equity shares and Rs 550 crore through offer for sale.

Shriram Properties has proposed partial exits to its four existing investors -- TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital -- which hold around 58 per cent stake in the company. In offer for sale, each of the selling shareholders will be entitled to their respective portion of the proceeds from the offer for sale in proportion of the shares offered by them.
The company will not receive any proceeds from the offer for sale. Moreover, Shriram Properties proposes to utilise the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes.

Shriram Properties

-The company has a major presence in South India.

-It has completed various real estate projects and many projects are under construction.

Real estate IPOs

-Despite the COVID-19 pandemic, the Indian real estate sector has witnessed two successful public issues of the Real Estate Investment Trust (REIT).

-Mindspace Business Parks REIT, owned by K Raheja, was listed in August last year after raising Rs 4,500 crore, while global investment firm Brookfield's REIT public issue worth Rs 3,800 crore got listed in February this year.

-India's largest realty firm Macrotech Developers, erstwhile Lodha Developers, is raising up to Rs 2,500 crore through IPO, which closed on Friday.