Shriram Properties IPO Subscribed 4.60 Times On Final Day Of Issue
According to the stock exchange’s application date, the initial public offering (IPO) sale of shares in Shriram Property was submitted 4.60 times on the third and final days of issuance. Real estate developers plan to raise 600 rupees through this issue. It consists of an offer to sell 350 rupees and a new issue of 250 rupees.
On Friday, the portion reserved for individual investors was subscribed at 12.71 times the highest of the three investor groups. The portion reserved for qualified institutional investors or QIBs was subscribed 1.85 times, and the portion reserved for non-institutional investors was subscribed 4.82 times.
The company sold its shares at a price range of 113 rupees and 118 rupees per share. Seventy-five percent of the issues were reserved for qualified institutional investors, 15% for wealthy individual clients, and 10% for individual investors. The company uses the revenue from the IPO for debt repayment and / or prepayment, and for general corporate purposes.
Shriram Properties has proposed a partial withdrawal to four existing investors: TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital. These investors own about 58% of the company’s stock.Shriram Properties is a part of the Shriram Group and is one of the leading residential real estate development companies in South India. The company primarily focuses on the mid-market and affordable housing segments.
“Shriram Properties’ total revenues decreased by 21 percent on-year to Rs 501 crore in FY21, impacted by the ongoing pandemic. Due to COVID-19 pandemic, construction activity had been stalled during the year. The company has also posted losses in the last two years.Due to its negative earnings, it is not possible to value the company on a PE ratio basis.Given a drop in revenues, negative earnings, uncertain outlook due to the ongoing pandemic, and high valuations, we remain “Neutral” on the prospects of the issue,” SEBI-registered investment advisor INDmoney said in a report.
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