Shriram Properties Ltd IPO

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Subscription Details

  • Open Date 08 Dec
  • Close Date 10 Dec
  • Lot Size 125
  • IPO Size ₹ 600 Cr
  • IPO Price Range ₹ 113 to ₹118
  • Min Investment ₹ 14125
  • Listing Exchange NSE, BSE
  • Basis of Allotment 15 Dec
  • Refunds 16 Dec
  • Credit to Demat Account 17 Dec
  • Listing Date 20 Dec

IPO Synopsis

Shriram properties Ltd IPO is opening for subscription between December 8 and December 10. The listing date is set as December 20, 2021. The price band of the issue is Rs.113-118 per share with the minimum investment standing at Rs.14,750 for 1 lot of shares (1 lot= 125 shares). 

The realty developer, Shriram Properties Ltd, filed it’s draft red herring prospectus with SEBI for an IPO worth Rs.800 crore but they have now cut the size to Rs.600 crore. The IPO comprises a fresh issue worth Rs.250 crore and an OFS of upto Rs.350 crore. The initial investors like TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital, are planning to partially offload their equity shares in this offer for sale. The book running lead managers to this issue are NOMURA Financial Advisory and Securities Pvt Ltd, ICICI Securities Ltd, Axis Capital Ltd. Omega TC Sabre Holdings Pte. Ltd will be offloading shares worth Rs.147.1 crore, Tata Capital will be offloading shares worth Rs.13 crore, upto Rs.148.9 crore offloaded by TPG Asia SFV and Rs.216 crore by Mauritius Investors. 


 
Objectives of the issue:
Rs.200 crore of the net proceeds is to be kept aside for prepayment or repayment of debt undertaken by the subsidiaries, Shiprop Structures, Global Entropolis and Bengal Shriram.

Shriram Properties Ltd IPO Subscription Status

 

Category Subscription Status
Qualified Institutional (QIB) 1.85 Times
Non-Institutional (NII) 4.82 Times
Retail Individual 12.72 Times
Employees 1.25 Times
Total 4.60 Times

 

Shriram Properties IPO Subscription Details (Day by Day)

 

Date QIB NII Retail Employees Total
December 08, 2021 17:00 0.00x 0.04x 4.85x 0.36x 0.89x
December 09, 2021 17:00 0.12x  0.18x  8.35x  0.78x  1.63x 
December 10, 2021 17:00 1.85x 4.82x 12.72x 1.25x 4.60x

About Shriram Properties Ltd

It has been reported that Sundaram Asset Management, Premji Invest and the Chinese conglomerate Fosun Group’s subsidiary- Fosun Hive, are likely to be anchor investor for this IPO bound company. A total investment of $150 million is being estimated as the total investment of the three companies. 

Shriram Properties, founded in 2000 by M.Murali, is a residential real estate company in South India. It focuses largely on the affordable housing category along with a presence in luxury, commercial and office space categories. Between 2015 and 2020, the company is one of the five largest real estate companies in South India, in terms of the number of units launched.

As of 31 September 2020, the company has successfully completed 29 projects which represent around 16.8 million square feet of sale-able area. Along with this, they have 35 ongoing projects and projects under development and this will take the sale-able area to 46.74 million square feet. The land reserves of the company, as of 30 September, 2021, stands at 197.47 acres with a saleable area of approximately 21.45 msf. 

Between 2008 and 2014, Shriram properties managed to raise $270 million from institutional investors and three-fifths of the company are owned by these investors. The post issue market cap is estimated to be around Rs.1,927-2,002 crore. 
 

Particulars

(In Rs cr)

Q2 ended 30 September, 2021

FY21

FY20

FY19

Revenue

118.18

431.50

571.96

650.13

Revenue growth

-

(24.56%)

(12.02%)

-

PAT

(60.03)

(68.18)

(86.39)

(48.79)

EBITDA %

25.08%

24.62%

16.16%

16.39%

EPS

(4.60)

(4.60)

(5.80)

3.39

 

 

Particulars

(In Rs cr)

Q2 ended 30 September, 2021

FY21

FY20

FY19

Equity share capital

148.11

148.11

148.11

148.11

Total Assets

3293.36

3299.48

3417.30

3365.63

 

Peer Comparison

Companies

EPS

Total Income

(In Rs cr)

RoNW%

Sobha Limited

29.69

3,825.6

11.60%

Prestige Estates Projects

10.63

8,243.3

10.17%

Brigade Enterprises Ltd

6.39

2,681.5

5.42%

Godrej Properties Ltd

10.84

2,914.5

5.62%

Oberoi Realty Ltd

18.96

2,285.9

7.99%

Sunteck Realty Ltd

7.14

631.5

7.67%


Key Points for Shriram Properties

Key Points

  • Strengths:

    1. Shriram properties is a part of the Shriram Group which has been in operation in India for the last 40 years and is a very renowned name in the financial sector and the company is also backed by marquee investors like Tata Opportunities Fund, TPG, Starwood, Walton Street Capital
    2. A strong project identification and execution track record develops good will amongst the customers and this in turn leads to more people being attracted towards the upcoming projects
    3. It is one of the leading residential real estate developer in South India with a presence in Kolkata and their main focus is on the affordable housing category and the mid level housing market, which is very lucrative in the current economy

  • Risks:

    1. Approximately 67.15%, of the sale-able area, as of 30 September 2021, is concentrated in Bangalore and Chennai, thus increasing the risk of being concentrated in one area
    2. The company is dependent on third party contractors to build their various projects. In case there is a delay in them providing enough workers or any other reason due to which work is not complete on time, it will hamper the company’s goodwill in the market
    3. Disruption, shortage and unavailability of raw materials will again adversely affect the operations of the business

Valuation and Recommendation

 

Taking into consideration the upper price band of Rs.118, the Price to Sales ratio stands at 4.64x on the revenue of FY21. We can see that the company is undervalued when compared to its peers who have a comparable scale of operations. On a more positive note, the company witnessed a CAGR growth of 23% in EBITDA from FY19 to FY21 and this added to the future growth potential of the real estate sector and a good debt to equity ratio being maintained by Shriram Properties Limited, a “Subscribe” recommendation can be given for investors with a long-term perspective. 
 

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the issue size of the Shriram properties Ltd IPO?

The issue size is a fresh issue of Rs.250 crore and OFS of Rs.350 crores, making the total issue size worth Rs.600 crores. 

How many shares will I get in 1 lot?

1 lot of Shriram properties Ltd IPO has 125 shares. 

When will the share be listed on the stock exchanges?

On December 20 th, 2021,  Shriram properties Ltd will be listed on the stock exchanges. 

What is the price of each share going to be?

The price range set for each share of Shriram properties Ltd, is Rs.113-Rs.118 per share. 

Who is the registrar to the offer?

K Fin Technologies Pvt Ltd is the registrar to the Shriram properties Ltd IPO.

How do I check the allotment status?

Way to check 1-  First you need to go to the registrar’s site- K Fin Technologies Pvt Ltd and then visit the IPO allotment page. From the drop down menu, select Shriram properties Ltd. Then, enter your PAN card details and select the application type- ASBA or Non-ASBA and enter the required details. After this the status is displayed on the screen.

Way to check 2- Visit the BSE application website page, select equity and then select Shriram properties Ltd from the drop down menu. After entering your PAN card details and application number, the status is displayed on the screen.

What is the minimum investment required?

The minimum investment required to apply for the Shriram properties Ltd IPO is Rs.14,750. 

It is the upper range of the IPO price i.e. Rs.118*125 shares (1 lot).  Minimum investment in an IPO is the amount of money that you need to invest in order to receive 1 lot of shares of the IPO. The number of shares in 1 lot varies from IPO to IPO but normally, the minimum investment value is calculated by multiplying the number of shares in 1 lot with the upper price range of the IPO price per share. 

Contact Details of Shriram Properties Ltd IPO

Contact Information

Address

Shriram Properties Limited

Lakshmi Neela Rite Choice Chamber, New No. 9,
Bazullah Road, T. Nagar, Chennai 600017,
Tamil Nadu, India
Phone: +91 44 4001 4410

Email: cs.spl@shriramproperties.com
Website: https://www.shriramproperties.com/

Shriram Properties Ltd IPO Register

Address

KFintech Private Limited

Phone: 04067162222, 04079611000
Email: murali.m@kfintech.com
Website: https://karisma.kfintech.com/
    

Shriram Properties Ltd IPO Lead Manager

Axis Capital Limited
ICICI Securities Limited
Nomura Financial Advisory And Securities (India) Pvt Ltd