Shriram Properties
Mainboard₹600 Cr issue
-20.34%
Listing gain over issue price
Issue size
₹600 Cr
1 lot at cut-off
₹14,750
Lot size
125shares
Open
08 Dec 2021
Close
10 Dec 2021
Allotment
15 Dec 2021
Listing
20 Dec 2021
Listing performance
Issue price
₹118
Listed at
₹94
Listing-day close
₹99.60
Latest price
₹62.46
Close on 23 Oct 2026
Listing gain
-20.34%
Return since issue
-47.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Dec 2021 – 10 Dec 2021
- Listing date
- 20 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹118 per share
- Lot size
- 125 shares
- Total issue size
- ₹600 Cr
- Market cap at offer price
- ₹2,002 Cr
- Promoter holding
- 32.00% → 28.00% pre-issue → post-issue
- ISIN
- INE217L01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Lakshmi Neela Rite Choice Chamber, New No.9, , Bazullah Road, T.Nagar, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 2,27,66,949 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 125 shares per lot, in multiples, at ₹118
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 125 | ₹14,750 |
| Retail (max) | 13 | 1,625 | ₹1,91,750 |
| S-HNI (min) | 14 | 1,750 | ₹2,06,500 |
| S-HNI (max) | 67 | 8,375 | ₹9,88,250 |
| B-HNI (min) | 68 | 8,500 | ₹10,03,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
2,27,66,949
Anchor portion
₹269 Cr
at ₹118 per share
Valuation and performance
Valuation at offer price
₹118 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,002 Cr |
About Shriram Properties
Shriram Properties Limited, incorporated as Synectics Infoway Private Limited in March 2000 and renamed in 2003, operates as one of the top five residential real estate companies in South India in terms of units launched between 2012 and Q3 2021 across Bengaluru, Chennai, and Hyderabad. The company develops residential projects in mid-market and affordable housing categories, along with commercial and office space. It operates through a combination of owned projects, joint development agreements with landowners, and development management business. As of September 30, 2021, the company has 29 completed projects, 26 ongoing projects, 5 projects under development, and 4 forthcoming projects. Revenue is primarily generated from the sale of constructed properties and development management fees.
Company Analysis
from RHPShriram Properties Limited is a leading residential real estate developer in South India focused on mid-market and affordable housing, also operating in commercial and office space categories.
Shriram Properties Limited, incorporated as Synectics Infoway Private Limited in March 2000 and renamed in 2003, operates as one of the top five residential real estate companies in South India in terms of units launched between 2012 and Q3 2021 across Bengaluru, Chennai, and Hyderabad. The company develops residential projects in mid-market and affordable housing categories, along with commercial and office space. It operates through a combination of owned projects, joint development agreements with landowners, and development management business. As of September 30, 2021, the company has 29 completed projects, 26 ongoing projects, 5 projects under development, and 4 forthcoming projects. Revenue is primarily generated from the sale of constructed properties and development management fees.
residential real estate developmentmid-market housingaffordable housingcommercial real estateoffice space development
Objects of the Issue
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company, our Subsidiaries, namely, Shriprop Structures, Global Entropolis and Bengal Shriram ₹2,000.00 million p.11
- General corporate purposes ₹304.17 million p.11
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company and our Subsidiaries, Shriprop Structures, Global Entropolis and Bengal Shriram ₹2,000.00 million p.82
- General corporate purposes ₹304.17 million p.82
- Not explicitly stated in this document part - Objects of the Offer section not included in pages 253-298
- General corporate purposes and working capital ₹2,500 million p.385
Issue Structure
- Total Issue
- ₹6,000 million
- Fresh Issue
- ₹2,500 million (21,212,576 equity shares)
- Offer for Sale
- ₹3,500 million (29,661,016 equity shares)
- Price Band
- ₹113 to ₹118 per Equity Share
- Lot Size
- 125 Equity Shares and in multiples of 125 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
Shriram Properties generates revenue primarily through: (1) sale of residential properties in mid-market and affordable housing categories; (2) sale of commercial and office space; (3) development management fees ranging between 8% to 16% of total project revenues based on the nature of activities agreed with counterparties. The company also benefits from pre-sales deposits and installment payments from customers which serve as working capital.
Business Segments
Development and sale of residential units in mid-market and affordable housing categories across South India
Provision of development management services for real estate projects, earning fees as a percentage of total project revenues
Development and sale of commercial and office space properties
Develops and sells residential properties including apartments, villas, and integrated townships across South Indian cities
Development of residential units with ticket size between ₹4.0 million and ₹8.0 million
Development of residential units with ticket size less than ₹4.0 million (or less than ₹4.5 million under GST provisions with carpet area ≤60 sq meters)
Provision of end-to-end real estate development services including project development, branding, marketing, sales, construction management and customer relationship management to other developers and landowners
Development of residential units with ticket size between ₹8.0 million and ₹12.0 million
Development of residential units with ticket size above ₹12.0 million
Development of commercial and office space properties
Projects where land has been acquired, construction completed, occupancy certificates received, and handover commenced. As of September 30, 2021, the company had 28 completed residential projects in Bengaluru, Chennai, Visakhapatnam and Coimbatore representing 14.73 million square feet of saleable area.
Projects where land has been acquired, design and pre-construction activities substantially completed, key approvals obtained, and construction or development activities commenced with sales or pre-sales. As of September 30, 2021, 26 ongoing projects aggregating 26.30 million square feet.
Projects where land has been acquired, approvals for conversion obtained, business plan and designs finalized, but process for seeking necessary approvals for development has not commenced and construction and sales have not yet commenced. As of September 30, 2021, 5 projects under development aggregating 8.27 million square feet.
Projects where all or majority of land or development rights have been acquired or are in process, relevant approvals for conversion obtained or in process, and business plan finalized, but process for seeking approvals for development has not commenced and construction and sales have not yet commenced. As of September 30, 2021, 4 forthcoming projects aggregating 12.15 million square feet.
Land acquired by the company on which no project is currently ongoing or planned. As of September 30, 2021, the company has land reserves of approximately 197.47 acres with development potential of approximately 21.45 million square feet.
Development and sale of residential units, commercial spaces, and infrastructure projects including plots, apartments, buildings, shopping malls, IT parks, and townships
Development management arrangements with ultimate land owners/developers where the Group recognizes revenue as services are delivered
Earning commission income from real estate transactions and administrative fees from project management
The Group is engaged in the business of real estate construction, development and other related activities including sale of constructed properties, development management services, and rental/lease-related income
Development and sale of residential units including mid-market, affordable, mid-market premium and luxury housing categories
Provision of development and project management services including planning, development, construction, execution, branding, marketing and sales, collections and client management for third-party projects
Development and sale of commercial office space
Development and sale of residential properties across multiple cities in India through completed projects, ongoing projects, projects under development and forthcoming projects
Receipt of development management fees and administration fees from joint ventures
SWOT Analysis
Strengths
- • Leading position in South India residential real estate with top-5 ranking by units launched(p.11)
- • Established brand presence and relationship with Shriram Group(p.28)
- • Diversified revenue model including development management business(p.32)
- • Substantial completed project portfolio demonstrating execution capability(p.25)
- • Strong insurance coverage of assets(p.41)
- • Integrated project execution and monitoring systems(p.42)
- • Part of Shriram Group with backing from marquee investors(p.92)
- • Leading position in South Indian mid-market and affordable housing(p.92)
- • Strong project execution capability(p.92)
- • Part of the Shriram Group with strong brand recognition and marquee investor backing(p.151)
- • Among top five residential real estate developers in South India by units launched(p.151)
- • Strong pre-sales growth and execution capabilities(p.152)
- • Presence in high-growth markets contributing significantly to national residential supply(p.152)
- • Successful transition to asset-light development management model generating fee income(p.151)
- • Experienced management team with deep real estate and regional expertise(p.151)
- • Extensive portfolio across multiple development models with significant scale(p.160)
- • Strong execution track record with high sales conversion at launch(p.158)
- • Competitive strengths in DM model execution and brand leverage(p.156)
- • Scalable asset-light DM business model reducing capital requirements(p.156)
- • Strong financial investor relationships enabling project funding(p.157)
- • Demonstrated capability in affordable and mid-market segments(p.160)
- • Focus on core South Indian markets with established market knowledge(p.160)
- • Experienced leadership with recognized track record in real estate sector(p.203)
- • Strong independent board with deep sector expertise and professional credentials(p.204)
- • Governance expertise on board with former senior government finance officials(p.204)
- • Leading residential developer in South India with strong market position(p.316)
- • Diversified portfolio across owned, JV and development management models(p.316)
- • Strong brand association with established Shriram Group(p.316)
- • Substantial land reserves in key South Indian markets(p.320)
- • Focus on mid-market and affordable housing with strong market demand(p.316)
- • Exposure to global commodity markets with ability to pass costs through(p.346)
Weaknesses
- • Significant debt burden limiting financial flexibility(p.25)
- • Presence of unsecured loans that can be recalled at lender's discretion(p.26)
- • Heavy reliance on joint development agreements without ownership of underlying land(p.30)
- • Incomplete land acquisition for certain forthcoming projects(p.26)
- • Potential conflicts of interest with independent director's competing business interests(p.25)
- • History of project delays with compensation obligations(p.27)
- • Title and land dispute litigation affecting multiple projects(p.34)
- • Significant litigation load across company and subsidiaries(p.15)
- • Significant uninsured and under-insured losses on multiple projects(p.41)
- • Loss-making group companies(p.41)
- • Completed projects lacking occupancy or completion certificates(p.41)
- • High employee attrition rate(p.41)
- • Recent net losses and negative cash flows(p.43)
- • Significant contingent liabilities including guarantees(p.43)
- • Promoter control concentration risk(p.44)
- • Significant dependence on Bengaluru and Chennai markets for revenue concentration(p.152)
- • High leverage relative to equity in capital structure(p.154)
- • Limited operational scale with only 29 completed projects as of September 30, 2021(p.151)
- • Heavy dependence on specific financial investors for capital access(p.157)
- • Incomplete land acquisition for key forthcoming projects(p.160)
- • Pending land use conversions affecting project development timelines(p.168)
- • Liquidity constraints managed through restructured debt and deferrals(p.158)
- • COVID-19 related loan restructuring impacting debt obligations(p.187)
- • Significant accumulated losses and negative retained earnings(p.243)
- • High debt burden relative to equity with significant interest costs(p.239)
- • Current liabilities exceed current assets, creating liquidity stress(p.238)
- • Consistent operating losses across multiple periods(p.239)
- • Joint ventures generating significant losses and consuming equity(p.239)
- • Recurring losses and negative profitability in recent periods(p.336)
- • Significant dependence on joint ventures with shared control and losses(p.336)
- • High finance costs materially impacting profitability(p.320)
- • Impairment losses on receivables and advances(p.336)
- • Material impairment losses and provision requirements(p.338)
- • High and volatile financing costs affecting leverage ratios(p.320)
- • Inability to guarantee full cost pass-through to customers for commodity price increases(p.346)
- • Pledged equity shares of subsidiaries as collateral for lender obligations(p.349)
- • Concentrated borrowing structure across company and subsidiaries(p.348)
- • Significant litigation related to land disputes across multiple projects(p.352)
Opportunities
- • Expansion of development management business model with lower capital requirements(p.32)
- • Growth in South India real estate market across multiple cities(p.11)
- • Expanding presence in emerging market of Kolkata(p.34)
- • Tax benefits and incentives for affordable housing development(p.37)
- • Scalable asset-light business model with strong financial position(p.92)
- • Benefits from regulatory and industry developments(p.92)
- • Established strategic relationships in industry(p.92)
- • Deployment of proceeds for debt reduction and general purposes(p.82)
- • Growth from RERA-driven industry consolidation benefiting larger established developers(p.155)
- • Rising demand for mid-market and affordable housing categories with sustained market share(p.151)
- • Expansion in high-growth emerging markets with large population and urbanization tailwinds(p.102)
- • Government affordability schemes and tax incentives supporting affordable housing demand(p.117)
- • Expansion potential in under-represented geographies and new markets(p.155)
- • Significant growth potential in Kolkata's emerging real estate market(p.156)
- • Expansion of DM model driven by RERA compliance requirements(p.156)
- • Consolidation of real estate industry favoring larger organized players(p.157)
- • Large-scale integrated township development at Shriram Grand City(p.169)
- • Plotted development segment expansion under Shriram Earth brand(p.156)
- • Strong post-COVID recovery in sales and collections enabling growth(p.157)
- • Board authorized to access substantial debt capital markets to fund growth(p.206)
- • Finance and Risk Management Committee authorized to deploy substantial capital for growth(p.212)
- • Growing development management business model generating higher-margin fees(p.319)
- • Expansion into new markets like Kolkata with substantial land reserves(p.316)
- • Large pipeline of 35 projects under development with 46.72 million sq ft(p.316)
- • Strong unsatisfied demand in core mid-market and affordable segments(p.316)
- • Growing DM portfolio representing 31.92% of total estimated Saleable Area(p.319)
Threats
- • COVID-19 pandemic impact on sales, collections, and construction timelines(p.23)
- • Geographical concentration risk in South India real estate market(p.25)
- • Volatility in building material and labour costs(p.29)
- • Complex and evolving regulatory environment including RERA compliance(p.37)
- • Increasing competition in real estate sector affecting profitability(p.40)
- • Dependence on external contractors for project execution(p.29)
- • Exposure to environmental and regulatory compliance costs(p.39)
- • Dependence on limited customer base with top 5 projects generating over 70% of revenue(p.39)
- • Inherent risks of natural disasters and uninsurable events in real estate(p.41)
- • Macro-economic slowdown and political instability in India(p.44)
- • Government land acquisition risk(p.44)
- • Restrictions on foreign direct investment in real estate sector(p.44)
- • Natural and man-made disasters impact on operations(p.45)
- • Competition law restrictions on growth strategy(p.46)
- • Foreign investor restrictions on share transfer and repatriation(p.46)
- • Intense competition from established and emerging developers in residential real estate(p.116)
- • Cyclical nature of real estate market vulnerable to economic downturns and credit cycles(p.107)
- • Regulatory changes and RERA compliance requirements raising operational complexity(p.104)
- • Dependence on credit availability and home loan rates for end-user demand(p.99)
- • Geographic concentration risk with heavy exposure to pandemic-sensitive urban centers(p.108)
- • Project delays and cost overruns affecting reputation and financial performance(p.187)
- • Intense competition from large organized developers in South India(p.175)
- • Regulatory and compliance risks under RERA and environmental laws(p.177)
- • Dependence on key personnel affecting operational continuity(p.175)
- • Potential uninsured losses exceeding insurance coverage limits(p.175)
- • IT system failures disrupting business operations(p.176)
- • Uncertain impact of COVID-19 on future business operations(p.187)
- • Significant dependent exposure through joint ventures with substantial loss accumulation(p.238)
- • Non-controlling interests declining, suggesting minority shareholder value erosion in subsidiaries(p.238)
- • Dependence on real estate market performance in South India with geographic concentration(p.318)
- • External factors affecting customer purchasing power and market demand(p.318)
- • Heavy regulatory burden and evolving RERA compliance requirements(p.320)
- • RERA regulations subject to interpretation and evolving jurisprudence(p.320)
- • COVID-19 pandemic disrupting construction, sales and operations(p.319)
- • Material construction cost volatility from raw material price fluctuations(p.320)
- • Dependence on financing availability for capital-intensive development(p.320)
- • Project delays adversely affecting reputation and financial performance(p.319)
- • Cyclical nature of commodity prices affecting construction costs(p.346)
- • Operational disruption during monsoon season(p.346)
- • Restrictive lender covenants limiting operational and financial flexibility(p.350)
- • Multiple pending regulatory and environmental violations across projects(p.357)
- • Extensive pending RERA proceedings with material compensation claims(p.365)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| M. Murali | Promoter | 0.00% | — |
| Shriram Properties Holdings Private Limited | Promoter Group | 31.82% | — |
| Shriram Group Executives Welfare Trust | Promoter Group | 0.16% | — |
| Shriram Properties Holdings Private Limited | Promoter Group | 31.82% | 27.83% |
| Shriram Group Executives Welfare Trust | Promoter Group | 0.16% | 0.14% |
| M. Murali | Promoter | 0.00% | 0.00% |
| Shriram Group | Parent company and promoter | — | — |
| Shriram Properties Holdings | Promoter/Promoter Group | — | — |
| M. Murali | Individual Promoter | 0.00% | — |
| Shriram Properties Holdings | Corporate Promoter | — | — |
| SGEWT (Shriram Group Employees Welfare Trust) | Promoter | — | — |
| Shriram Properties Holdings Private Limited | Promoter Group | 31.82% | — |
| M. Murali | Promoter | 0.0% | — |
| Shriram Group Executives welfare Trust | Promoter Group | 0.2% | — |
| Shriram Group | Promoter Group | — | — |
| M. Murali | Promoter | — | — |
Leadership
M. Murali · Chairman and Managing Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Shriram Properties IPO FAQs
What is the lot size of Shriram Properties IPO?
The minimum lot size of Shriram Properties IPO is 125 shares. One lot costs ₹14,750 at the cut-off price.
When does Shriram Properties IPO open and close?
Shriram Properties IPO opened for subscription on 08 Dec 2021 and closed on 10 Dec 2021.
What is the listing date of Shriram Properties IPO?
Shriram Properties IPO listed on 20 Dec 2021.