Shriram Properties shares made a tepid debut at BSE and NSE on December 20. The realty stock opened at Rs 90 per share levels on NSE, which is 23.7 per cent lower from its issue price of ₹113 to ₹118 per equity share. Shriram Properties IPO was subscribed 4.60 times over the 2.93 crore shares that were on offer. The leading real estate developer launched its maiden offer from December 8-10 to raise Rs 600 crore. The price band was fixed at Rs 113-118 per share.
Shriram Properties IPO saw bids of over 13.51 crore shares against the total issue size of over 2.93 crore shares, according to the data. The portion allocated for the qualified institutional buyers (QIBs) was subscribed 1.85 times, while those of non institutional investors was subscribed 4.82 times. The retail portion was subscribed 12.72 times.
Shriram Properties IPO comprised fresh issuance of equity shares worth Rs 250 crore and an offer for sale (OFS) of Rs 350 crore. The net proceeds from the fresh issue will be used towards repayment and or pre-payment of debt and general corporate purposes.
Shriram Properties IPO Listing on BSE, NSE Today
Shriram Properties grey market premium slipped in the last few day despite the decent response from the investors during the offer. Shriram Properties share was trading at a premium of just Rs 10 in the grey market, as per data from IPO Watch. Shriram Properties GMP IPO was 8 per cent up over the higher end of the issue price.
Covid-19 pandemic related uncertainty and a number of IPO options currently available in the primary market have dented the investors’ interest in Shriram Properties IPO. Experts believed that investors may be wary of the emergence of another Omicron variant across the globe and its probable impact on the real estate sector.
On Shriram Properties IPO valuation, Angel One said in a note, “Based on H1FY2022 numbers, the IPO is priced at a price to book value of 2.28 times at the upper price band of the IPO, which is in line with the listed peer group.”
“Shriram Properties Limited IPO opens at Rs 95, which is a discount of 19.5 per cent to its issue price of ₹118. Currently, the company is trading at price to book value of 1.83 times, which is attractive compared to other listing residential developers. We suggest investors to hold the stock if they have received the allotment and investor who has not received the allotment can buy at the current price,” said Yash Gupta, equity research analyst, Angel One Ltd.
Established in 2000, Shriram Properties Ltd 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 commercial and office space categories in its core markets.
As of September 30, 2021, Shriram Properties has completed 29 projects, representing 16.76 mn sq ft of saleable area, out of which 24 completed projects are in the cities of Bengaluru and Chennai (90.6 per cent of the saleable area). Further, 83.69 per cent of total saleable area for completed projects were in the mid-market category and affordable housing category (mid-market and affordable categories accounting for 51.44 per cent and 32.25 per cent respectively), and the remainder in the commercial and office space and luxury housing categories. Additionally, plotted developments accounted for 33.41 per cent and 34.67 per cent of sales volumes during H1 FY22 and FY21, respectively.
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