Shriram Properties plans to float IPO after the Budget

Our Bureau Chennai | Updated on January 08, 2020 Published on January 08, 2020

M Murali, CMD, Shriram Properties Ltd, at a press conference in Chennai on Wednesday   -  Bijoy Ghosh

Realty firm looks to raise ₹800 crore

Shriram Properties, Bengaluru-headquartered real estate arm of Chennai-based Shriram Group, has indicated that it will firm up plans to float IPO (initial public offer) after the forthcoming Union Budget.

The company is proposing to raise funds in the range of ₹750-800 crore. It has obtained regulator’s nod to launch its IPO and has time till April this year.

“Stock market has been going through some rough patch where large caps are doing well while mid- and small-caps are struggling. We plan to float our IPO after the Union Budget,” M Murali, Chairman & Managing Director, Shriram Properties told here.

The company has so far raised about $800 million from PE investors, highest in a private developer segment.

Murali said the company will be able to deliver value to the shareholders and the listing will help get funds at a slightly lower cost besides providing more visibility to the brand.

Kolkata launch

Earlier he said the realty market was improving and the company, a leading player in South India, is looking to enter cities such as Mumbai and Pune. It is getting ready to launch an affordable home project in Kolkata soon.

According to him, affordable (sub-40 lakh) and mid market (40-80 lakh) home categories were doing well and the outlook for the same is also bright.

“We are seeing a good opportunity in these two segments. We have a portfolio of 58 million sq ft. We delivered about 3.8 million sq ft in 2018-19, up from 2.4 million in FY18. Our target for this fiscal is 4 million sq ft and for next fiscal, 5 million sq ft,” said Murali.

At the time the realty sector is marred by delays and fund crisis, Shriram Properties will be delivering its residential project in Chennai ahead of time.

Ahead of schedule

Murali said the Phase I of residential project Shriram Park 63 on GST road at Perungalathur in Chennai will be delivered six months ahead of the planned schedule. The Phase 1 will see the company building a total of 883 units through 10 towers with each tower containing 14 floors. It will feature 1,2, and 3BHK houses.

He also said the company was a leader in fee income-based development management model under which Shriram Properties develops projects for small players and landowners for revenue.

Currently, 27 per cent of Shriram’s portfolio is through the above model and the company expects the share to increase to about 35 per cent in a couple of years.

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Published on January 08, 2020
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