Grapevine: Shriram Properties slashes IPO size; Kotak drops out of Altico race
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Chennai-based real estate developer Shriram Properties Ltd, which planned to raise Rs 1,250 crore ($174 million at current exchange rate) in an initial public offering and received approval in April 2018, has reduced the IPO to Rs 750 crore which it plans to launch after the Union Budget in February, a person familiar with the plans told Mint.

“The expectation from the Budget is that it will be housing-friendly, particularly for the mid-income and affordable housing segments,” said the person mentioned above.

Shriram Properties plans to raise around Rs 250 crore through the primary market and the rest from the secondary market and will use the proceeds to pare its leverage level, the report said.

The company has already got commitments of around Rs 400 crore from around nine investors, said a second person. Shriram Properties currently has Tata Capital, TPG, Starwood Capital Group and Walton Street Capital as entity-level investors.

Separately, Kotak Investment Advisors Ltd, one of the suitors for Altico Capital India Ltd, has dropped out of the race for the troubled shadow bank, people in the know told Bloomberg, leaving only Cerberus Capital Management LP and SSG Capital Management as external bidders. 

Cerberus and SSG will now rival an Altico shareholder-sponsored group in the race for Mumbai-based Altico that got swept by India’s shadow banking crisis which began in 2018 as it started defaulting in September 2019.

Kotak’s move comes after feedback from creditors, the people said, asking not to be named. 

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