The IPO subscription of Shriram Properties opened on 8 December 2021 and is scheduled to end on 10 December 2021. Hence, today is the last date for investors to apply for the public issue. After two days of bidding, the public offer has been subscribed 1.63 times. According to Shriram Properties IPO Subscription Status, public issue worth 600 crores has been subscribed 8.35 times in the retail category, 0.12 times in the QIB category and 0.18 times in the NII category. After being fully subscribed in the first two days of bidding, the share price of Shriram Properties has also jumped in the gray market. According to market experts, the shares of Shriram Properties are trading at a premium. 20 in the gray market today.
Shriram Properties IPO GMP
According to market experts, Shriram Properties IPO GMP is today 20, which is twice its gray market premium (GMP) as on Thursday. Market watchers say that the issue being fully subscribed and the positive sentiment in the stock market could be the two possible reasons for such a jump in the IPO gray market premium of Shriram Properties. He said that Nifty Realty Index has given a breakout of 10 years and hence those who have longer time horizon can come to the block and apply for the public issue as its membership will expire today evening.
What does this GMP mean?
Market observers say that the gray market premium simply means the expected listing profit in the gray market from the public issue. As of Shriram Properties IPO GMP today 20, means gray market is expecting share listing of Shriram Properties 138 ( 118 + 20), which is about 17 percent higher than its price band from 113 118 per equity share.
However, stock market experts say that the GMP is an unofficial data and should not be relied upon much. He advised investors to look at the balance sheet of the company as it gives a solid picture of the financial health of the company.
Shriram Properties IPO: Apply or Not?
giving ‘subscribe’ tag to aggressive investors; Aayush Aggarwal, Senior Analyst, Swastika Investmart said, “Financial position of the company has been weak with revenues declining while the company is making loss since FY20. The company’s revenue in FY19 was 723 crores, which fell 501 crore in FY 2011, while it made a profit of 48 crore more losses in FY19 67 crores in FY21. Despite strong brand recognition, the company has suffered during COVID, when real estate and housing were booming. The retail share of the loss-making company is 10 per cent. The IPO is approaching a P/BV multiplier of 2.09, as against the industry average of 3.69, which may attract modest listing gains. However, we believe that there are many reputed listed companies like Shobha, Brigade, Prestige etc., and only aggressive investors should apply for IPO.”
Giving Shriram Properties IPO Review; Abhay Doshi, Founder, UnlistedArena.com, said, “The real estate company primarily targets the mid-market and affordable housing categories in the major cities of the south i.e. Chennai and Bengaluru. On the operational front, revenues have been on a downward trend and The company posted losses for the last two years. The issue price is 2 times its book value.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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