Shriram Properties has filed the draft red herring prospectus (DRHP) with market regulator SEBI to raise up to Rs 800 crore through an initial public offer (IPO). Out of the total IPO size, it plans to raise Rs 250 crore through fresh issue of equity shares and Rs 550 crore through offer for sale.
Shriram Properties has proposed partial exits to its four existing investors --TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital -- which hold around 58 per cent stake in the company. In offer for sale, each of the selling shareholders will be entitled to their respective portion of the proceeds from the offer for sale in proportion of the shares offered by them. The company will not receive any proceeds from the offer for sale.
Shriram Properties proposes to utilise the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes. The company has a major presence in South India. It has completed various real estate projects and many projects are under construction.