Shriram Properties Listing: The listing of Shriram Properties, one of the leading residential real estate development companies of South India, has disappointed IPO investors.
Shriram Properties Listing: The listing of Shriram Properties, one of South India’s leading residential real estate development companies, has disappointed IPO investors. Its shares were listed today (December 20) at a discount of about 20 percent at Rs 94 against the issue price of Rs 118. However, after the weak listing, there was a recovery in its price and it reached a price of about Rs 104.40 on the BSE i.e. at a discount of 11.53 percent against the issue price. Its market capitalization at the current price is Rs 1,770.87 crore.
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Reserved share of retail investors is the most subscribed
The Rs 600 crore IPO of Shriram Properties was open from December 7-10 and investors could invest in lots of 125 shares in the price band of Rs 113-118. The issue was subscribed 4.60 times and the portion reserved for most retail investors was oversubscribed. The portion reserved for retail investors was oversubscribed. The share reserved for retail investors was subscribed 12.72 times. The share of Qualified Institutional Buyers (QIBs) was oversubscribed by 1.85 times, Non-Institutional Investors (NII) by 4.82 times and the share for employees by 1.25 times.
Company related details
- Shriram Properties is a part of Shriram Group and is one of the largest residential real estate development companies in South India.
- Its main focus is in the mid-market and affordable housing segment. However, it also has a presence in the mid-market premium, comfortable housing categories, commercial and office space categories.
- Talking about the financial condition of the company, its business was affected due to Corona. Its net profit (Profit After Tax) in the financial year 2019 was Rs 48.79 crore while in the next financial year it suffered a loss of Rs 86.39 crore. Its position improved in the next financial year 2021, but still it suffered a loss of Rs 68.18 crore.
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