Shares of Shriram Properties will be listed on the stock exchange on Monday. Shriram Properties Initial Public Offering (IPO) received good response from investors during the offer. Shriram Properties IPO It was subscribed 4.60 times against 2.93 crore shares. The leading real estate developer launched its first offer from 8-10 December to raise Rs 600 crore. The price band was fixed at Rs 113-118 per share.
According to the data, the IPO of Shriram Properties saw bids for 13.51 crore shares against the total issue size of 2.93 crore shares. The share allocated to Qualified Institutional Buyers (QIBs) was subscribed 1.85 times, while the share of non-institutional investors was subscribed 4.82 times. The retail segment was subscribed 12.72 times.
The IPO of Shriram Properties consisted of equity shares of Rs 250 crore and Offer for Sale (OFS) of Rs 350 crore. The net proceeds from the fresh issue will be used for repayment and/or prepayment of loans and for general corporate purposes.
Shriram Properties IPO Listing on BSE, NSE Today
The stock of Shriram Properties will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December 20 at 10 am.
Shriram Properties’ gray market premium has slipped over the past few days despite good response from investors during the offer. According to data from IPO Watch, the stock of Shriram Properties was trading at a premium of just Rs 10 in the gray market. Shriram Properties was up 8 per cent from the high end of the GMP IPO issue price.
The uncertainty surrounding the COVID-19 pandemic and the multiple IPO options currently available in the primary market have affected investor interest in Shriram Properties’ IPO. Experts were of the view that investors may be wary of the emergence of another Omicron variant around the world and its potential impact on the real estate sector.
On IPO valuation of Shriram Properties, Angel One said in a note, “Based on H1FY2022 numbers, the IPO is priced at 2.28 times book value over the upper price band of the IPO, which is in line with the listed peer group.”
“Shriram Properties Limited’s business is concentrated in major cities in South India including Bengaluru, Chennai and Hyderabad. The company has pledged equity shares of certain subsidiaries in favor of their respective lenders. The COVID-19 disease may impact business and operations,” ICICI Direct said in a note. Considering all these risks, the brokerage house advised investors to avoid the issue. However, Angel One and Choice Some other well-known brokerage houses, including Broking, have a “Subscribe” rating on the issue.
Established in 2000, Shriram Properties Limited is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. It is also present in the mid-market premium and luxury housing categories as well as the commercial and office space categories in its core markets.
As of September 30, 2021, Shriram Properties has completed 29 projects, representing 16.76 million sq ft of salable area, of which 24 completed projects are in the cities of Bengaluru and Chennai (90.6 percent of the salable area). In addition, 83.69 percent of the total salable area for completed projects was in the mid-market category and affordable housing category (accounting for 51.44 percent and 32.25 percent in the mid-market and affordable categories, respectively), and the rest was in commercial and office . Space and luxury housing categories. Additionally, plotted developments accounted for 33.41 per cent and 34.67 per cent of the sales volume during H1 FY22 and FY21 respectively.
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