NEW DELHI: Bengaluru -based real estate developer Shriram Properties has filed draft papers with the market market regulator Securities and Exchanges Board of India (SEBI) for an initial public offering (IPO) to raise up to Rs 800 crore. According to reports, the company had filed the draft red herring prospectus (DRHP) on Friday.
The draft papers show that the company proposes to raise up to Rs 800 crore through the listing and out of the total IPO size, it plans to raise Rs 250 crore through the fresh issue of equity shares and Rs 550 crore through an 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 an around 58 per cent stake in the company.
As for the offer for sale, each of the selling shareholders will be entitled to their respective portion of the proceeds from the issue in proportion to the shares offered by them. The company will not receive any proceeds from the offer for sale, the papers show. Shriram Properties proposes to utilise the net proceeds from the fresh issue towards repayment and/or pre-payment of debt and general corporate purposes.
Reports had said earlier said that the company expects to get the regulator’s nod next month and that, thereafter, it will hit the capital market with the proposed IPO. The company has a major presence in South India and has completed various real estate projects, with many others under construction. Despite Covid, the real estate sector has witnessed two successful public issues of REITs.