Shriram Properties Ltd. Chairman and Managing Director M. Murali
Two U.S.-based real estate private equity (PE) firms Walton Street Capital and Starwood Capital have exited Shriram Properties Ltd. (SPL) by selling 14.27% stake through a bulk deal on the NSE for ₹134 crore.
“We see the current deal as a very good outcome for long term value creation, and welcome our new investors, given the current market situation,” CMD M. Murali said during an interaction. “We are doing good business. SPL will consistently focus on its core business and stated objective of improving scale, profitability and returns.”
SPL sees the development as a welcome move, as it removes a significant part of liquidity overhang. Besides, SPL also believed that the stock was significantly undervalued, largely due to this PE stock overhang and the market will recognise this in coming days, it said in a statement.
The PEs have exited SPL after being on the board for a long duration. They sold 2.43 crore equity shares during the first trading session for about ₹55.05 per share. It was purchased by Mumbai-based Aurum Real Estate Developers Ltd. At the end of the day, SPL was quoted at ₹60.34 on the BSE, registering a gain of more than 9% over Wednesday’s closing price.
“These two PEs have not invested in the Indian market for long as their priority was elsewhere and hence, it is not surprising they decided to exit,” said a market source.
Tata Capital and TPG Capital are the other PEs having invested in the SPL and they have been associated with the company for more than eight years. Currently, the promoters hold 72% of equity and balance is with the public.
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