BENGALURU :
Shriram Properties Ltd is planning a ₹600-700 crore public itemizing within the second week of December, two individuals accustomed to the matter mentioned, because it seeks to capitalize on a rebound in demand for residential properties and heightened investor curiosity within the phase.
The Bengaluru-based firm, which focuses on mid-income housing tasks in south India, filed draft papers with the Securities and Alternate Board of India (Sebi) to boost as much as ₹800 crore via an preliminary public providing (IPO) in April. It obtained the market regulator’s nod in June.
Shriram Properties is now within the means of submitting an up to date draft prospectus with Sebi, one of many two individuals mentioned requesting anonymity. As soon as authorized, the corporate will proceed with the share sale, the particular person mentioned.
“Shriram Properties intends to provide partial exits to its 4 current traders—TPG Capital, Starwood Capital, Tata Capital and Walton Road Capital and Starwood Capital. A part of the proceeds shall be used to pare debt,” the second particular person mentioned.
The 4 traders maintain round 58% in Shriram Properties, a part of India’s Shriram Group. The particular person didn’t say how a lot stake can be bought by the 4 traders within the IPO.
“The corporate has received good response from potential anchor traders, primarily home mutual funds and international institutional traders,” the particular person mentioned.
A spokesperson for Shriram Properties didn’t reply to queries.
This might be the second public itemizing of a property agency after Macrotech Builders Ltd’s ₹2,500 crore IPO in April.
Property analysts mentioned investor curiosity within the residential sector has recovered considerably. Decrease mortgage charges, individuals’s choice for larger houses in the course of the pandemic and alter in shopper choice to personal a property has spurred demand.
“Institutional traders have stayed away from the housing sector for a few years now. However that modified in the course of the pandemic, and we’re seeing a gradual restoration in homebuyers’ sentiment in addition to traders. If gross sales and venture launches proceed the best way they’re at present, the sector will see a comeback of traders too,” mentioned a property marketing consultant requesting anonymity.
In a sign of sturdy investor curiosity, Mumbai-based Macrotech Builders, which makes use of the Lodha model identify, raised ₹4,000 crore in November via a certified institutional placement (QIP) from international and home institutional traders. The QIP, the most important up to now by a property developer in India, got here simply six months after Macrotech’s public itemizing. Whereas Macrotech garners practically half its gross sales bookings from reasonably priced and mid-segment tasks, Shriram additionally focuses on funds housing. Analysts mentioned traders are bullish on this phase as a result of it accounts for a sizeable share of whole residential gross sales.
Supply: Live Mint