The Chinese conglomerate Fosun Group’s real estate wing Fosun Hive , Sundaram Asset Management, and Premji Invest are likely to be anchor investors in IPO-bound Shriram Properties, said sources. The three companies are likely to invest about $150 million together, they said.
The real estate company filed its Draft Red Herring Prospectus (DRHP) to raise up to ₹800 crore through an IPO in April this year. The company has said that it plans to utilise the net proceeds for repayment of debt and other corporate usages. It plans to raise ₹250 crore through a fresh issue of equity shares and over ₹550 crore through an offer for sale. The IPO is set to hit the stock markets this month.
In exchange, the real estate company has said that four of its existing investors, TPG Capital, Tata Capital, Walton Street Capital, and Starwood Capital are likely to make a partial exit. Together, they hold close to 58 per cent of Shriram Properties.
While FosunHive, Premji Invest, and Shriram Properties did not respond to BusinessLine’s query, Sundaram Mutual said that it “does not comment on any company specific investment related matters.”
Potential investors’ profile
Fosun Hive has invested in India in September 2019. partnered with Ahuja Constructions. This partnership is known as Ahuja Hive. The company has worked on multiple projects since.
Private Equity firm, PremjiInvests, owned by Azin Premji has made multiple investments across sectors. It has made investments in multiple brands like FabIndia, ID foods, Lenskart, Policybazaar, Flipkart, Gold Plus Glass, and Shubham Housing among others.
Whereas, Chennai-based Sundaram Asset Management Company Limited operates as an investment management firm. The company offers asset management, portfolio construction, financial planning, and investment advisory services.
As of March 31, 2020, Shriram Properties posted a revenue of ₹571.96 crore versus ₹650.13 crore a year ago. Net loss for the year stood at ₹65.02 crore against ₹86.39 crore last year.
According to data from Tofler, there are two registered charges in the name of Shriram Properties for FY21. In July Shriram raised ₹7 crore from LIC Housing Finance Limited and in August it raised ₹6 crore from Housing Development Finance Corporation Limited respectively.