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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

IPO OPENING DATE	8th Dec, 2021
CLOSING DATE FOR IPO	10th Dec, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	113 Rs. – 118 Rs.
LOT SIZE	shares
MINIMUM ORDER QUANTITY	shares
ISSUE SIZE	600 Crore Rs.
OFFER FOR SALE	350 Crore Rs.
FRESH ISSUE	250 Crore Rs
LISTING AT	NSE, BSE
LISTING DATE	20th Dec, 2021

IMPORTANT DATES

IPO OPENING DATE	8th Dec, 2021
CLOSING DATE FOR IPO	10th Dec, 2021
IPO ALLOTMENT DATE	15th Dec, 2021
REFUNDS	16th Dec, 2021
DEMAT A/C CREDITED ON	17th Dec, 2021
IPO LISTING DATE	20th Dec, 2021

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 :

	Shares	Amount
Minimum	125 shares	14750 Rs
Maximum	1625 shares	191750 Rs

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

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	32994	34173	33656
REVENUE	5013	6318	7237
NET PROFIT	-681	-863	-488

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.