Shriram Properties IPO subscribed 45% on its opening day; check details here

Representational image. News18

The Rs 600-crore Initial Public Offering (IPO) of real estate developer Shriram Properties began today, 8 December. As per the company, the issue will close for subscription on 10 December. On its opening day, the IPO was subscribed 45 percent. Investors came with bids for 1.31 crore equity shares against the company’s issue size of 2.93 crore equity shares.

Meanwhile, retail investors subscribed 2.48 times against the portion set aside and employees had bid for six percent of the shares that were reserved for them. So far, qualified institutional buyers and non-institutional investors are yet to put in their bids for the offer.

Financial Listing

Shriram Properties is planning to raise Rs 600 crore through the IPO listing that comprises an offer for sale of Rs 350 crore worth of shares and a fresh issue of Rs 250 crore. A sum of Rs 268.65 crore has already been raised by the company on 7 December, through anchor investors. The shares of the IPO are priced at Rs 113-118 apiece.

Investors can bid in a lot of 125 shares, and its multiples later, as per news reports. This is the second public listing of a property firm, after Macrotech Developers Limited’s IPO of Rs 2,500 crore in April this year. Shriram Properties’ shares are expected to be listed on exchanges on 20 December.

Details about Shriram Properties

This firm has a strong hold in south Indian markets of Bengaluru and Chennai. As of September, 2021, the Shriram Properties had completed 29 projects, 35 are still under development.

Furthermore, it also has land reserves of (approximately 197.47) acre, with a development potential of approximately 21.45 million square feet in terms of saleable area.

During the second wave of coronavirus , the Shriram Properties was severely hit but it somehow managed in its growth. Meanwhile, Promoters Shriram Properties Holdings, M Murali and Shriram Group Executives Welfare Trust have 31.98 percent shareholding in this organisation. Moreover, top investors like Omega TC Sabre Holdings, Tata Capital Financial Services, TPG Asia SF V and WSI/WSQI V (XXXII) Mauritius hold the remaining stake.