The shares of Shriram Properties Ltd on Monday listed with a discount of nearly 24 per cent against its issue price of Rs 118.
The stock listed at Rs 94, a decline of 20.33 per cent from the issue price on the BSE. It further tumbled 22.24 per cent to Rs 91.75.
On the NSE, it made debut at Rs 90, a discount of 23.72 per cent.
Shriram Properties' initial share sale got subscribed 4.60 times on the final day of the offering earlier this month.
Shriram Properties mopped up Rs 600 crore through its public issue that comprised a fresh issue of Rs 250 crore and an offer for sale of Rs 350 crore. The company will repay certain borrowings availed by itself and its subsidiaries, a report in Moneycontrol said.
The realty player's price band for the offer was Rs 113-118 per share.
On 9 December, Shriram Properties’ IPO attracted 89 per cent subscription on the first day of the offer.
Interestingly, before heading into the IPO, Shriram Properties had raised over Rs 268 crore (Rs 2,68,64,99,982) from 34 anchor investors in lieu of 2,27,66,949 equity shares at Rs 118 each, reported The Indian Express, citing data from the stock exchanges then.
Check what analysts/brokerage houses had said about the company’s IPO:
Yash Gupta, Equity Research Analyst at Angel One
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.
We believe that the company has a strong track record of delivering the project on time and can maintain strong execution which will get reflected in the pre-sales numbers going ahead. The brokerage had assigned a ‘subscribe’ rating on the issue, according to a report published in Moneycontrol.
Akash Jain of Ajcon Global
The analyst had given a subscribe call to the issue, citing strong parentage, demonstrated capabilities in project identification, strong execution track record, development portfolio comprised of 35 projects, scalable and asset light business model, and decent financial performance.
Marwadi Financial Services
The brokerage firm had recommended investors avoid this IPO because it finds the company’s valuations expensive compared to its peers.
