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Shriram Properties IPO Opens Today: GMP, Financials, Risks. Strength; Should You Buy?

newshungar 3 years ago 2 min read

Property Shriram IPO: South Indian-based real estate company Shriram Properties Limited is set to float the initial public offering, or IPO, on December 8, Wednesday. The supply process will be opened for three days and will be closed on December 8, Friday, the company said. Shriram property, headquartered in Bengaluru, wants to collect around RS 600 Crore during the IPO. Property Shriram IPO has a ribbon price of Rs 113 to RS 118 per share with a nominal value of each RS 10. The company, which mainly has a focus on the middle and affordable housing segment, South India in terms of the number of units launched between CY12 and Q3CY21 in the entire city in the region.

This offer consists of a fresh issue worth Rs 250 Crore and offers for sale by existing shareholders worth Rs 350 Crore. At the top of the price ribbon, the company plans to clean Rs 600 Crore through this problem.

The Shriram property has 75 percent of the problems provided for qualified institutional buyers (QIBS), 15 percent for non-institutional investors (NIIS) and 10 percent for retail investors. Lot size of the Shriram IPO property is 125 equity shares. Investors can bid in multiples of 125 shares afterwards. One lot of the Shriram IPO property will cost Rs 14,750 at the top of the price ribbon.

Problem goal

The company will use the results of new problems for payment and / or pre-payment, full or partially, from certain loans available by IT and its subsidiaries. This fund will also be used for the purposes of public companies. The company will not accept the results of the part of the problem.

Shriram property is limited to GMP IPO today

In accordance with different market reports Gray Market Premium (GMP) fluctuated between Rs 20 to RS 25 since the IPO announcement. On December 8, Property Shriram shares took RS 20 premiums in the gray market. It’s about 17 percent of the value at the top of the ribbon price of Rs 118. Market premiums gray often show how the IPO will appear during the list on the stock market.

Property Shriram’s main risk IPO

According to Choice Broking, Shriram Properties Limited, although supported by Marquee Investors, is subject to unfavorable government policies and regulations and has no good movement in terms of interest rates. The real estate industry also faces further risk of Covid-19 pandemic, which affects the company as well. Limited Shriram properties usually postpone delays in implementing projects and have slower development management expansion. Being in the real estate sector, the company also faces a lot of competition. Shriram Properties Limited also supports higher construction costs.