Real-estate developer Shriram Properties, part of Shriram Group, is set to roll out its Initial Public Offering (IPO) Today for public subscription which ends on 10th December. price band has been set 113-118 per share. Shriram Properties picked up a bit 268 crore from anchor investors before its IPO.
BSE data shows that as of 3:05 pm on day 1, Shriram Properties’ IPO has been oversubscribed 0.73 times, while the retail category has been overbooked 3.99 times.
This public issue involves a fresh issue of equity shares of value 250 crore and an offer for sale (OFS) 350 crores. The firm has reduced its offer for sale size from 350 crores 550 crores ago.
As per market observers, the Shares of Shriram Properties at a premium (GMP) is 16 in the gray market today. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on December 20, 2021.
Giving a ‘subscribe’ rating to the issue, analysts at Choice Broking said that “SPL is one of the leading residential real estate development companies in South India, with presence in the major South India markets of Bengaluru and Chennai. These two The city is among the two major residential housing markets in India and will continue to be among the top cities in terms of growth.SPL’s business was badly hit during the second wave of the pandemic and thus is expected to perform better in the coming quarters “
The Company plans to utilize the net proceeds from the fresh issue for repayment and/or prepayment of loans and for general corporate purposes.
“At the upper price band of the IPO, the IPO price is in line with the peer group listed. We believe the company has a strong track record of delivering projects on time and can maintain strong execution which will be reflected in the pre-sale numbers going forward. Therefore, we are submitting the recommendation to “Subscribe” to Shriram Properties Limited IPO,” Angel One said in a note.
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