HomeReal Estate NewsShriram Properties reduces IPO size to Rs 750 crore, says report

Shriram Properties reduces IPO size to Rs 750 crore, says report

The company had received approval from capital markets regulator Securities and Exchange Board of India (Sebi) to float an IPO in April 2018.

By CNBC-TV18 January 8, 2020, 8:49:45 AM IST (Updated)

Bangaluru-based real estate developer Shriram Properties Ltd has reduced the size of its proposed initial public offering (IPO) to Rs 750 crore, reported Mint.

According to the report, the developer had planned to launch the IPO after the Union budget in February to raise up to Rs 1,250 crore earlier.

The company had received approval from capital markets regulator Securities and Exchange Board of India (Sebi) to float an IPO in April 2018.

“The expectation from the budget is that it will be housing-friendly, particularly for the mid-income and affordable housing segments, which is what Shriram Properties focuses on. Market sentiment was weak last year but is expected to pick up and be positive after the budget announcement," the report quoted said the person directly familiar with the plans.

Shriram Properties has Rs 590 crore of debt, and will mainly use the proceeds of the share sale to pare its leverage level. The developer plans to raise around Rs 250 crore through the primary market and the rest from the secondary market, the newspaper report added.

Further, the company has already got commitments of around Rs 400 crore from around nine investors, the report quoted another person. Shriram Properties currently has Tata Capital, TPG, Starwood Capital Group and Walton Street Capital as entity-level investors, it added.