- Shriram Properties is primarily focused on mid-market and affordable housing categories.
- The company has raised ₹600 crore through this public issue.
- The company is commanding a grey market premium (GMP) of ₹9.
The company had first filed its draft red herring prospectus (DRHP) to go public in 2018, but redacted the offer due to a sluggish property market. However, some stock brokerages were not too excited about this public issue even now.
Saurabh Joshi and Kaushal Thakkar of Marwadi Financial Services have suggested retail investors to stay away from the offering as it is “expensive as compared to its peers.”
“We are constructive on the company's long term growth prospects given the current positive industry growth trends and Shriram's strong brand presence and execution track record. However, improvement in financials would remain a key monitorable for the company," said analysts at Religare Broking.
The issue was oversubscribed by 4.6 times.
Shriram Properties is a south India-based company, which is primarily focused on mid-market and affordable housing categories. The company has completed 29 projects, representing 16.76 million square feet of saleable areas, as of September 30 of this year.
The company has raised ₹600 crore from this public issue. Nearly ₹250 crore was raised through the fresh issue, while the remaining ₹350 crore was raised as offer for sale (OfS) from existing shareholders — including Walton Street Capital, TPG Asia and Omega TC Sabre Holdings.
The price band of the public issue is ₹113 to ₹118. The
The grey market premium (GMP) — a premium amount at which shares are traded in the unofficial market — was at ₹9 on December 18.
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