Shriram Properties Limited IPO : Company Details and IPO Highlights

Shriram Properties is a part of Shriram Group. Its major business is located in South India. It is one of the major property and real estate developers in South India.  The company’s major business is carried out in Bangalore and Chennai. It has been able to successfully complete 29 projects. From these 29 projects, 24 are established in Bangalore and Chennai.

IPO DETAILS

Shriram Properties Limited IPO is set to launch on 8th Dec., 2021. The subscription timeline extends till 10th Dec, 2021. The size for the IPO is 600 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 250 Crore. Shares issued through Offer for Sale are worth Rs. 350 Crore. The lot size is 125 shares and the price range is 113 Rs. – 118 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IMPORTANT DATES

Shriram Properties Limited IPO begins for subscription from 8th Dec, 2021. The IPO subscription would continue till 10th Dec, 2021. The allotment status for the shareholders who applied would come on 15th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 16th Dec, 2021. The DEMAT accounts of shareholders would be credited on 17th Dec, 2021. The listing of the company would be accompanied on 20th Dec, 2021.

Lead Managers And Promoters

The promoters of the company are Shriram Properties Holdings Private Limited, M. Murali and Shriram Group Executives Welfare Trust.

The lead managers are :

• Axis Capital Limited
• Nomura Financial Advisory and Securities India Private Limited
• ICICI Securities India Limited

The minimum lot size for the company is decided at 125 shares. This holding accounts to  14750 Rs.. The maximum lot size is decided at 1625 shares. This amounts to 191750 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• The funds can be utilised for General corporate purposes.
• Shriram Properties Ltd’s subsidiaries like Shriprop Structures, Bengal Shriram and Global Entropolis are into debt. Hence one of the purposes behind the IPO launch is to pay these dues.

COMPANY FINANCIALS

The asset base of the company was increasing in 2020, but in 2021 the assets have gone down by more than 1000 Million Rs. This has given a negative impact to revenues. The revenues have decreased by 130 Million Rs in the same time. On the other hand, losses of the company have been increasing. The maximum loss was recorded in 2020 at 860 Crore Rs and followed by that in 2021 it was close to 680 Crore Rs. Hence the company is full of risk for the investors and one should definitely avoid investing in the IPO.

PROS

• The company is the leader in the real estate developer’s market in South India.
• The Company has a strong asset base.
• It has major business in the I.T. Hubs of India (Bangalore and Chennai).
• The company has completed 29 projects till date.

CONS

• The revenues of the company are decreasing every year. Even Before COVID the company has been registering a decreased stream of revenues and an increase in losses. Hence the liquidity and financial position of the company is highly questionable.

Shriram Properties Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Shriram Properties Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.