Shriram Properties share sale through preliminary public providing (IPO) was subscribed 4.60 occasions on the third and closing day of its challenge, in keeping with subscription knowledge on the inventory exchanges. The actual property developer plans to boost Rs 600 crore by way of the difficulty, which consists of a suggestion on the market price Rs 350 crore and contemporary challenge of Rs 250 crore.
On Friday, the portion reserved for retail particular person buyers was subscribed 12.71 occasions – the best among the many three teams of buyers. The portion put aside for certified institutional consumers or QIB was subscribed 1.85 occasions, whereas the portion reserved for non-institutional buyers was subscribed 4.82 occasions.
The firm offered its shares within the worth band of Rs 113-Rs 118 per fairness share. 75 per cent of the difficulty was reserved for certified institutional consumers, 15 per cent for prime internet price people and 10 per cent for retail buyers. The firm will utilise the IPO proceeds to repay and/ or pre-payment debt and for common company functions.
Shriram Properties has proposed partial exit to its 4 current buyers — TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital – which maintain round 58 per cent stake within the firm.
Shriram Properties is part of the Shriram Group and is likely one of the main residential actual property improvement firms in South India. The firm primarily focuses on the mid-market and reasonably priced housing segments.
“Shriram Properties’ total revenues decreased by 21 per cent on-year to Rs 501 crore in FY21, impacted by the ongoing pandemic. Due to COVID-19 pandemic, construction activity had been stalled during the year. The company has also posted losses in the last two years.
Due to its negative earnings, it is not possible to value the company on a PE ratio basis.
Given a drop in revenues, negative earnings, uncertain outlook due to the ongoing pandemic, and high valuations, we remain “Neutral” on the prospects of the difficulty,” SEBI-registered funding advisor INDmoney stated in a report.