Shriram Properties lists 20% below IPO price amid a market-wide meltdown

• Shares of Shriram Properties list at ₹94 while the shares were allotted at ₹113 per share.
• The IPO was subscribed 4.6 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹1,594 crore.

Shriram Properties, part of the Shriram Group and one of the leading residential real estate development companies in south India, listed 20% below the issue price of ₹113 apiece. The listing took place on a day that the Sensex and the Nifty fell around 2% due to weak global cues and COVID-19 variant Omicron scare.

Keeping aside the company's strong position in the southern part of the country and growth prospects, analysts had expected a poor listing gains for the company because of the COVID-19 scare. The company has reported losses for two consecutive years because its business operations were impacted by COVID-19 induced lockdown and restrictions.

“Although the company has a strong brand name in South India, during COVID when real estate was booming, they suffered losses. The grey market premium currently trades between 8-10%, but given the current market conditions, we might see a comparatively weak listing,” Aayush Agrawal, senior analyst at Swastika Investmart, told Business Insider on December 17.

Post-listing, the market capitalisation of the company stood at ₹1,594 crore, according to BSE data.

The shares of Shriram Properties were trading at ₹97, lower by 17% at 10.01 a.m., on December 20. The grey market had indicated a decent listing for Shriram Properties a day prior to the listing with a ₹9 premium per share.

The IPO was open between December 8 and December 10 ⁠and was oversubscribed 4.6 times by investors. The company intended to raise ₹600 crore through this public issue.

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