The Initial Public Offer (IPO) will include fresh issue of shares worth Rs 250 crore and an offer for sale of up to Rs 550 crore by the Bangalore-based developer’s existing shareholders and promoters.
TPG Asia and Omega TC Sabre Holdings are among the existing investors, who are diluting their stake in the company.
The offer for sale comprises of Rs 147.1 crore by Omega TC Sabre Holdings, up to Rs 13 crore by Tata Capital Financial Services; up to Rs 148.9 crore by TPG Asia SF V, up to Rs 216 crore by WSI/WSQI V (XXXII) Mauritius Investors and up to Rs 25 crore by the other selling shareholders.
The developer is among the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories.
Axis Capital Limited,
and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.
This the second attempt by the firm to raise capital. It had deferred its IPO plans after filing the DRHP in 2018 due to a sluggish residential market.
Shriram Properties had raised $270 million between 2008 and 2014 from institutional investors. Cumulatively, these investors own three-fifths of the company. The company’s existing key investors include TPG Capital, Starwood Capital, Walton Street Capital and Tata Capital.
The developer is primarily focused on the mid-market and affordable housing categories, and it currently has a total portfolio of 51 million sq ft, either under construction or in the pipeline, across the southern markets including Bangalore. It has land reserves of around 197.47 acres, with a development potential of 21.76 million sq ft of estimated saleable area.