Shriram Properties To Raise Rs 1,500 Crore Through IPO
South India’s real estate major Shriram Properties will be soon going public to raise Rs 1,500 crore through its Initial Public Offering (IPO). The IPO is scheduled for launch in March next year. The issue will be offering shares of existing institutional investors such as TPG Capital and Starwood Capital along with Tata Capital who owns 60 per cent stake in the firm. There will be a few fresh offerings as well, but the proportion is not yet decided.
These investors have invested around $270 million in 2008-2014. It is quite rare that investors pick up equity at the entity rather than the developer’s project. Interestingly, Shriram Properties has so far received investments worth $600 million at various levels.
Recently, Mitsubishi Corp, a Japanese multi-national company, invested Rs 180 crore in Shriram Properties ongoing project, Shriram Park 63. The project is under development at the GST Road in Chennai, with 1,450 residential units and 2 million square foot of saleable area. It was Mitsubishi’s first investment in India's real estate sector.
Earlier, the developer had acquired 10 stressed properties in Chennai, Bengaluru and Kolkata.
About Shriram Properties
Shriram Properties is the real estate arm of Shriram Group of companies, based in Bengaluru. The company has projects in Bengaluru, Chennai, Kolkata, Coimbatore and Vizag. So far, the developer has delivered 11 million sqft of built-up space with 61 million sqft in various stages of development. The company aims to sell five million sqft space in current financial year and eight million sqft in the next financial year. The builder firm is known for developing mid-segment and affordable housing projects. Recently, they formed a platform worth Rs 1,000 to invest in affordable as well as distressed assets with the help of ASK group. Some of the popular projects by Shriram are Codename, Signiaa, Sameeksha, Summit, Luxor, etc.