Shriram Properties Ltd. trimmed its planned IPO to 7.50 billion rupees from 12.50 billion rupees despite housing-friendly sentiments in the Union budget of India, Mint reported, citing a person familiar with the plans.

The unnamed source noted that Shriram Group's property development arm plans to launch the initial offering after the February release of the budget that is expected to be beneficial for the residential sector particularly the mid-income and affordable housing segments, which are the focus of the Bengaluru, India-based developer.

Shriram Properties obtained approval from the Securities and Exchange Board of India for its proposed IPO in April 2018. It will primarily use proceeds from the IPO to pare its leverage level, according to the publication.

The company, which lists Tata Capital, TPG, Starwood Capital Group and Walton Street Capital LLC as its entity-level investors, is targeting 2.50 billion rupees from the primary market alone. Meanwhile, it secured 4.00 billion rupees in commitments from nine unnamed investors, according to a second unnamed source.

A spokesperson for the company declined to comment regarding updates to the planned offering, the Jan. 7 report added.

As of Jan. 7, US$1 was equivalent to 71.85 Indian rupees.