Shriram Properties Ltd IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

IPO Note	Shriram Properties Ltd
Rs 113 – Rs 118 per Equity share	Recommendation: Listing Gain

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Shriram Properties Ltd IPO Company Profile: –

Shriram Properties come from the table of Shriram Group which is one the largest south India’s conglomerate with four decade of operation, company is one of the largest real estate player in south India, it has 29 completed project in India out of which 24 are in Bengaluru and Chennai. Primary focus of the company is in affordable segment where government is also giving incentive to customer in this segment. Company is recently expanding its portfolio and have started into luxury as well as commercial real estate and are also entering new market like Coimbatore, Visakhapatnam and Chennai. Shriram has started developing project on Joint development basis which reduces upfront cost and they are able to leverage their brand value and execution capability.

Shriram Properties Ltd IPO Details –

Issue Details
Objects of the issue	· Repayment/ Prepayment of existing Borrowing of the company and its subsidiaries. ·   General Corporate Purpose.
Issue Size	Total issue Size -Rs. 600 Cr. Offer for Sale – Rs. 350 Cr. Fresh Issue – Rs. 250 Cr.
Face value	Rs.10.00 Per Equity Share
Issue Price	Rs. 113 – Rs. 118
Bid Lot	125 shares
Listing at	BSE, NSE
Issue Opens:	8thDec, 2021 – 10th Dec, 2021
QIB	75% of Net Issue Offer
Retail	10% of Net Issue Offer
NIB	15% of Net Issue Offer

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Shriram Properties Ltd IPO Financial Performance:

Shriram Properties Ltd IPO Shareholding Pattern:

Shareholding Pattern	Pre- Issue	Post Issue
Promoters & Promoter Group	31.98%	27.98%
Public	68.02%	72.01%

Source: RHP, EWL Research

Shriram Properties Ltd IPO Strengths:

• Company has very strong presence in south market which is expected to do well because of IT wage hike.

• They are entering new market with joint venture with other company so that their upfront cost is low, so the need for capital is low, which will reduce their interest burden going forward

• With the introduction of RERA small players are finding it difficult to compete with big players, so this company will benefit as they have strong promoter backing.

• Consumer preference has now shifted to branded developer who has strong execution capability and this company has demonstrated their execution skills in last two decade.

Shriram Properties Ltd IPO Key Highlights:

• Revenue decreased at 16.78% CAGR from FY19 to FY21, sales are been impacted due to covid.

• PAT has degrown at a CAGR of 18% from FY18 to FY21.

• In FY21 company has generated cash flow of ₹ 147.5 crore and free cash flow of ₹ 146.5 crore.

• As of September 30, 2021, 24 Ongoing Projects, four Projects under Development and four Forthcoming Projects.

• Pre-Sale volume grew at CAGR of 22.61% between the financial year 2017 and 2021.

Shriram Properties Ltd IPO Risk Factors:

• Revenue of the company is constantly going down and reporting losses for last two year.

• Company has too much concentration in south India, so any regulatory change many impact financial of the company.

Shriram Properties Ltd IPO Outlook:

Shriram Properties is a realty player of south India which has majority exposure in Bengaluru and Chennai, this company offers mid-size affordable houses and now have started entering into new market and new segment like premium and commercial real estate, they are also venturing into new partnership with other builders and land owners so that they don’t have to invest in upfront cost of land, they are trying to build an asset light model. Realy Estate as a sector is expected to do well in future because of the uptick in Indian economy and consolidation in the market as unorganized player in realty market are losing market share. Shriram Properties is a making losses and revenue is constantly dropping and has too much concentration in south India when compared to other peers they are much better player which have diversified portfolio and better performance, So we are recommending listing gain only for aggressive investor.

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