Shriram Properties Limited

About the company

In the 1970s, three friends ventured into a chit funds business. Overtime, this small business evolved into a financial conglomerate called Shriram Group. The group’s real estate arm, Shriram Properties, is now set to hit the exchanges with a ₹600 crore IPO. The company primarily focuses on mid-market and affordable segments in the cities like Bengaluru and Chennai. T he company’s financial performance has been impacted due to the pandemic and it has suffered losses over the last two years. **All about the IPO** In the early 2000s, the Indian economy was on a sharp upward trajectory and the prices of real estate were [ rising](https://www.managementstudyguide.com/indian-real-estate-market.htm) . Riding on this wave, Shriram Properties forayed into this space. It has also received financial backing from PE investors TPG, Tata Capital, Walton Street Capital and Starwood. The company has evolved into one of the top five real estate companies in South India. It currently has 35 projects in the pipeline. **Business highlights** * Two decade-old real estate company with focus on mid-market and affordable housing categories. * Leading real estate company in South India with Bengaluru and Chennai as its key markets. * Backed by the Shriram group and marquee investors. **Financials** Revenue: -18.5%; Net loss: NA (FY19-21 CAGR) The performance was hampered by the pandemic-led cancellations, resulting in lower volumes and gross collections. **Strengths** * Demonstrated strong capabilities in project identification. Its pre-sales volumes grew at 22.6% CAGR between FY17 and FY21. * Shifted towards an asset light model which offers a combination of real estate development as well as real estate services. * It provides real estate services to smaller real estate developers and other landowners for a fee ranging between 10% and 16% of the project revenue. **Risks** * The new variant of the virus could impact the business. * Real estate development activities are concentrated primarily in South India. * Faces competition from large developers such as Prestige Estates, Brigade Enterprises, Embassy, Puravankara.   * Top five projects have contributed to bulk of revenues in recent years - average 80% in the last three years. **Good to know** The share of top 20 players has significantly improved post the implementation of RERA in Shriram Properties key markets like Bengaluru and Chennai. Also, the lower interest rates and pent-up demand for urban housing is expected to benefit organised players like Shriram Properties. The third quarter of 2021 witnessed new launches of 32,863 residential units, up 21% quarter-on-quarter.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   08 Dec 2021

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   10 Dec 2021

   Last day to place your bid

3. Basis of Allotment

   Completed
   10 Dec 2021

   Share allotment finalised

4. Refund Initiation

   Completed
   16 Dec 2021

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   15 Dec 2021

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   20 Dec 2021

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.