The Bengaluru-based developer is expected to file the draft red herring prospectus (DRHP) in the coming week. It proposes to utilise the net proceeds for the repayment of certain borrowings by the company and its subsidiaries, and for general corporate purposes.
This the second attempt by the firm to raise capital. It had deferred its IPO plans after filing the DRHP in 2018 due to a lean residential market.
“The renewed initiative will see both Shriram Properties and some of its existing investors offloading stakes,” said one of the persons, who did not wish to be identified.
Shriram Properties could not be reached for comment.
“The company and the selling shareholders may, in consultation with the book running lead managers, consider a pre-offer placement of up to Rs 100 crore,” said the person.
Shriram Properties had raised $270 million between 2008 and 2014 from institutional investors. Cumulatively, these investors own three-fifths of the company.
The key investors include TPG Capital, Starwood Capital, Walton Street Capital and Tata Capital.
Axis Capital is the lead manager for the IPO. The developers shares will be listed on the BSE and NSE, according to the persons cited earlier.
Macrotech Developers, earlier known as Lodha Developers, is planning to raise Rs 2,500 crore through IPO this month.
Shriram Properties is primarily focused on the mid-market and affordable housing categories, and it currently has a total portfolio of 51 million sft, either under construction or in the pipeline, across the southern markets including Bengaluru. It has land reserves of about 197.47 acres, with a development potential of 21.76 million sq ft of estimated saleable area.
