Shriram Properties aims to be debt-free by 2026

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based real estate developer Shriram Properties is working to be debt-free by the next year, and plans to achieve this by selling land and increasing cash flow.

In an interview with CNBC-TV18, Gopalakrishnan J, ED and Group CFO of Shriram Properties, said the cost of borrowing has decreased from 14% to 11%.

“Zero net debt, we would most likely be in FY26; the early part of FY26 and may not necessarily happen in FY25 unless some of the land monetisations in Kolkata get accelerated and deliver big cash flow,” he said.

Gopalakrishnan said the ongoing water crisis has not impacted construction schedule yet.

Shriram Properties, which serves the southern states, recently acquired a four-acre plot of land near Electronic City in Bengaluru’s Chandapura micro market, aiming to build a significant residential project.

Also Read: Bengaluru | Shriram Properties unveils new Balinese-inspired residential project near Electronic City

The upcoming project will cover nearly four lakh square feet, with about 350 apartments up for sale. The company expects to develop this project over three years, anticipating revenues exceeding ₹250 crore. They plan to kickstart the project within the current financial year (FY25).

Shriram Properties has a market capitalisation of ₹2,054.13 crore. Its shares have risen 82% over the past year.

Focused primarily on mid-market and affordable housing, Shriram Properties operates in key cities like Bengaluru, Chennai, and Kolkata. These cities account for approximately 85% of the company’s development activities.

Also Read: Shriram Properties foresees significant price surge in real estate after general elections

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow