Shriram Properties Limited IPO

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i. They are one of the leading residential real estate development companies in South India, primarily focused on the mid-market2 and affordable3, 6 housing categories. They are among the top five residential real estate companies in South India in terms of number of units launched between the calendar years 2012 and the third quarter of 2021 across Tier 1 cities of South India including Bengaluru, Chennai and Hyderabad.

ii. They are part of the Shriram Group, which is a prominent business group with four decades of operating history in India and a well-recognized brand in the retail financial services sector and several other industries.

iii. As of September 30, 2021, they have 29 Completed Projects, representing 16.76 million square feet of Saleable Area, out of which our 24 Completed Projects in the cities of Bengaluru and Chennai accounted for 90.56% of our Saleable Area.

iv. Company’s portfolio consists of 26 Ongoing Projects, five Projects under Development and four Forthcoming Projects, which account for 56.28%, 17.71% and 26.01% of its total estimated Saleable Area, respectively, as of September 30, 2021

Competitive Strengths
Part of the Shriram Group and Backed by Marquee Investors
Leading Residential Real Estate Development Companies
Established Strategic Relationships

Objects of the Shriram Properties Limited IPO:

The Offer comprises of the Fresh Issue and the Offer for Sale. Our Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: 1. Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company and the Subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram 2. General corporate purposes, subject to applicable laws.

Shriram Properties Limited IPO Details:

Open Date: Dec 08 2021
Close Date: Dec 10 2021
Total Shares: 50847457
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 600 Cr.
Lot Size: 125 Shares
Issue Price: ₹ 113 - 118 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 20 2021

Promoters And Management:

i. M. Murali, is the Chairman and Managing Director and individual Promoter of the Company. He has completed the executive education Fast Track General Management Programme conducted by Indian Institute of Management, Bangalore and Owner/President Management programme conducted by the Harvard Business School, Massachusetts. He has over 17 years of work experience with the Company and was first appointed as a Director of theThe Offer comprises of the Fresh Issue and the Offer for Sale. Company on March 30, 2003. He was appointed as a Chairman and Managing Director on December 13, 2018. He has received the Life Time Achievement Award for Outstanding Contribution to Real Estate Sector at the DNA Real Estate and Infrastructure Round Table & Awards in November, 2018, South India’s Real Estate Leadership Lifetime Achievement Award for Outstanding Contribution to the Real Estate Sector in September 2018, the M.D. of the Year from Times Network National Awards for Marketing Excellence in July 2018, M.D. of the Year from ET Now Star Awards in December 2018 and the M.D. of the Year (Real Estate) from ET Now Real Estate Awards in February 2019. ii. S. Natarajan, is a Non-Executive Director of the Company. He is a member of the Institute of Chartered Accountants of India since 1975. He is on the board of various other companies, such as Binny Mills Limited, Calcom Credit and Holdings Private Limited, Envestor Ventures Limited, Integrated Enterprises (India) Private Limited, Sipping Spirits Private Limited etc. He has been associated with the Shriram group for over 17 years and has been a Director of the Company since March 30, 2003. iii. Raphael Dawson is a Non-Executive Nominee Director of the Company. He holds a bachelor’s degree in science (individual major) and a master’s degree in science – business (major in business, real estate appraisal and investment analysis) from University of Wisconsin - Madison. He has more than 15 years of work experience and is currently a Principal with Walton Street Capital, LLC. At Walton Street Capital, LLC, he is responsible for the development and asset management functions in United States, Mexico and India. He has been a Director of the Company since March 14, 2014.

Financials of Shriram Properties Limited IPO:

Particulars (in Millions) Mar 21 Mar 20
Revenue 4,315 5,719
Land cost 272 255
Material and construction cost 1,375 2,261
Changes in inventories 738 1,006
Employee benefits expense 634 847
Impairment losses 226 20
Other expenses 555 1,022
Operating profit 513 305
OPM % 12% 5%
Other Income 698 598
Finance Cost 1,253 1,231
Depreciation 65 64
Profit Before tax -681 -863
Profit After Tax -675 -864
EPS -4.60 -5.8

Recommendation on Shriram Properties Limited IPO:

Review and Recommendation of Shriram Properties by InvestorZone is 3/10 1. Nothing great in the company in terms of financials. Revenue dipped in FY21 due to covid-19 and bottom-line is continuously posting losses. 2. Mcap Pre-IPO is Rs.1746 Crores and Post-IPO is Rs. ~2000 Crores. Mcap/Sales = 4.4x 3. Peers like Godrej Properties and Sobha Limited are trading at Mcap/Sales of 23x and 2.1x, respectively.  We can not compare with Godrej as it is great brand. And, if we compare with Sobha Limited, then valuation looks stretched. 4. Real Estate as a sector is doing well due to low interest rates and lower prices of properties.

Registrar of Shriram Properties Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Shriram Properties Limited Lakshmi Neela Rite Choice Chamber, New No. 9, Bazullah Road, T. Nagar, Chennai 600017, Tamil Nadu, India Phone: +91 44 4001 4410 Email: Website

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