Shapoorji Pallonji to Launch IPO for Real Estate Arm in 2 Years
Shapoorji Pallonji Group to consolidate real estate holdings and launch IPO for new holding company, Shapoorji Pallonji Real Estate
Shapoorji PallonjiReal EstateIpoMumbaiIndiaReal Estate MumbaiAug 20, 2024
The new holding company will consolidate the group's real estate holdings across key cities, including Mumbai, Pune, Bengaluru, Gurugram, and Kolkata. The portfolio comprises land parcels spread over 2,000 acres, with the value of the land estimated to be around $6 billion.
According to Venkatesh Gopalakrishnan, managing director and chief executive of SPRE, the portfolio has a total revenue potential of up to Rs 2 trillion after development. In the first phase, the company aims to raise around $800-900 million through an IPO of about a 10-12 per cent stake. Further dilutions could follow, taking the total fundraising to around $2 billion.
The holding company covers 45 land parcels and projects, with a total development potential of 140 million square feet. Projects totalling 22 million square feet are currently under development. The assets are primarily in five major cities, with large land parcels also held in Mysuru and Nagpur.
Shapoorji Pallonji Real Estate caters to both affordable and luxury housing, and has around Rs 6,500 crore of debt. The company's decision to launch an IPO is part of its strategic vision to drive operational efficiencies and foster greater growth opportunities.
Creating a unified holding company and consolidating assets under this entity is in line with our strategic vision to streamline operations and enhance value creation, said Gopalakrishnan.
About Shapoorji Pallonji Group: Shapoorji Pallonji Group is a Mumbai-headquartered conglomerate with interests in real estate, construction, and infrastructure development. The group has a long history of delivering iconic projects across India and has established itself as a leading player in the real estate sector.
About Shapoorji Pallonji Real Estate: Shapoorji Pallonji Real Estate is the real estate arm of the Shapoorji Pallonji Group. The company develops and manages residential and commercial projects across India, with a focus on delivering high-quality and sustainable developments.
Frequently Asked Questions
What is Shapoorji Pallonji Real Estate's plan for its IPO?
The company plans to raise around $800-900 million through an IPO of about a 10-12 per cent stake in the first phase, with further dilutions possible to take the total fundraising to around $2 billion.
What is the value of Shapoorji Pallonji Real Estate's land holdings?
The value of the land holdings is estimated to be around $6 billion.
How many land parcels and projects does Shapoorji Pallonji Real Estate have?
The company has 45 land parcels and projects, with a total development potential of 140 million square feet.
What is the total revenue potential of Shapoorji Pallonji Real Estate's portfolio?
The portfolio has a total revenue potential of up to Rs 2 trillion after development.
What is Shapoorji Pallonji Real Estate's debt position?
The company has around Rs 6,500 crore of debt.
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