Shriram Properties IPO: Latest GMP, Membership Status. Should you subscribe?

Shriram Properties IPO GMP

As Market Observers Reported, Shriram Properties IPO GMP Today 10, which is 6 below its yesterday’s gray market premium (GMP) 16. He said the share price of Shriram Properties is falling in the gray market due to sluggish investor response to the public issue. However, he expected the IPO subscription of Shriram Properties to increase on Friday, which is the last date to apply for the IPO.

What does this GMP mean?

Market observers say that the GMP of the public issue simply means that the IPO is expected to be listed. As of Shriram Properties IPO GMP today 10, that means the gray market is expecting the issue to be listed at approx. 128 ( 118 + 10), indicating the same list of book built offers as against its issue price from 110 118 per equity share.

Shriram Properties IPO subscribe or not

However, stock market experts say that the GMP is an unofficial data and should not be taken so seriously. He said it is the financial position of the company that matters not the gray market performance. Instead of checking the daily GMP of the public issue, one should look at the balance sheet of the company.

shed light on the financial position of the real estate company; Ankur Saraswat, Research Analyst, Trustline Securities, said, “Shriram Properties Limited is a part of Shriram Group, one of the leading residential real estate development companies in South India. Most of the projects are in Bengaluru and Chennai, so it got exposed. Geographical concentration to risk There is a constant inventory buildup. Financial performance and return metrics have been deteriorating over the years and the pandemic has exacerbated this situation.”

Suggesting aggressive investors to ‘subscribe’; 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 coming in at a P/BV of 2.09x while the industry average is 3.69x 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.”

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.