SHRIRAM, PURANIK TO REFILE PAPERS FOR LISTING

BENGALURU: Shriram Properties Pvt. Ltd and Puranik Builders Pvt. Ltd could be next in queue to launch initial public offerings (IPOs), hoping to exploit a surge in demand for primary market offerings, said three people familiar with the matter.

The two real estate firms will follow Macrotech Developers, formerly known as Lodha Developers, which filed its draft prospectus earlier this week, in its renewed and third attempt.

Bengaluru-based Shriram Properties and Mumbai’s Puranik Builders, both residential-focused developers, had filed draft red herring prospectus (DRHP) in the past and also received regulatory clearances for IPOs. Those plans, however, failed to materialize amid a prolonged slowdown in the residential sector, a liquidity crisis and, finally, the pandemic-led disruption. Macrotech’s move as well as rallying stock markets and a gradual recovery in homebuying sentiment may have prompted developers to regain faith in a public listing.

Shriram Properties, which received approval from market regulator Securities and Exchange Board of India (Sebi) for an IPO in 2019, is planning to refile its DRHP in March. The firm had in 2018-19 intended to raise ₹1,250 crore through the IPO, which it cut to ₹750 crore last year. “Given the overall optimism in the market, Shriram could raise above ₹750 crore and will take a call in the next two weeks. It expects to get a clearance sooner, given that there will only be certain tweaks in the earlier DRHP,” one of the people cited above said, requesting not to be named.

Shriram Properties, which focuses on affordable and midincome housing projects, saw sales recover to pre-covid levels in the December quarter. The company has lined up multiple project launches this year across Bengaluru and Chennai.

Puranik Builders had filed a DRHP in 2019-end for an estimated ₹900 crore IPO. The company received approval from Sebi early last year, which is valid till 31 March.

“The firm has a valid card till March-end and is evaluating if it should launch the IPO by then and if that doesn’t happen, then file a DRHP again soon after. Last year, due to covid, Puranik couldn’t go ahead and launch the IPO; but now things look better,” the second person said.

Spokespersons at Shriram Properties and Puranik Builders declined to comment.