South India based real estate company Shriram Properties to bring IPO this week

South India based real estate company Shriram Properties to bring IPO this week In this week, many companies are bringing their IPOs namely Rakesh Jhunjhunwala-backed Metro Brands, RateGain Travel Technologies, Shriram Properties and CE Info Systems (MapmyIndia). We have discussed about Metro Brands and RateGain Travel IPOs in our previous article. In this Article, we will discuss about Shriram Properties. Shriram Properties:

• When:

The maiden initial public offering of the real estate company will come out on 8^th of December this week which will conclude after two days i.e. 10^th of December.

• Fresh issue: Rs 250 crore.
• Offer for sale: Rs 350 crore.
• Price band: Rs 113-118 apiece.
• Market value at the upper end of the price band: Rs 2,001.3 crore.
• Face value: Rs 10 apiece.
• Lot size: 125 shares and multiples.
• Listing: NSE and BSE.
• Lead managers: Axis Capital, ICICI Securities, Nomura.
• Company Promoters: Murali, Shriram Properties Holdings Private Limited and Shriram Group Executives Welfare Trust are the company promoters.

The company plans to utilize the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes. The south India-based residential real estate Development Company has completed close to 29 projects spread across 17 mn sq ft and has close to 35 projects with a development potential of 47 million sq ft. The company witnessed an increase in customer cancellations due to Covid-19. However, as per Murali M, chairman and managing director, Shriram Properties Limited going forward the company is committed to the timelines promised. The company does not plan to expand to Mumbai, Pune or Delhi-NCR markets and mainly focusing on the southern markets where they find huge potential. Bengaluru and Chennai are the two key markets for the company, but it also has a presence in Kolkata. Reportedly, as per him the four institutional investors are Walton Street, Starwood Capital, TPG Capital and Tata Capital. As per experts, the company is getting losses at the net level for the fiscal year-2020. The first half of a fiscal year 2022 also indicates a further dip in profits. The company has earlier posted a loss of Rs 60.0 crore on revenues of Rs 118.2 crore in the six months period ended September 2021. The only thing which seems to be in favor currently of this IPO will be the tag of the company. Hence, only people who can take risks and are investing for long term should subscribe to it.