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Home / Markets / Ipo /  Shriram Properties IPO: GMP signals marginal listing. Details here
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Shriram Properties IPO is expected to hit at Indian bourses on 20th December 2021 and allottees are looking at all such possibilities to make an assessment in regard to the public issue. For such allottees, there is a piece of news from the grey market. According to market observers, shares of Shriram Properties are available at a premium of 12 in the grey market today. They said that grey market premium for the last few days indicates that the allottees may have a marginal premium on the date of listing as Shriram Properties IPO grey market premium (GMP) has remained in between 10 to 15 for around a week.

Shriram Properties IPO GMP

As per the market observers, Shriram Properties IPO GMP today is 12, which is 5 lower from its yesterday's GMP of 17. Market observers went on to add that Shriram Properties IPO grey market price had gained 7 yesterday after jumping from 10 to 17. But, it seems that it has once again come to its range of 10 to 15 per share premium that it had been showing for last one week.

What this GMP mean?

Market observers went on to add that GMP is an unofficial hint from the grey market about the listing gain from the IPO. As Shriram Properties IPO GMP today is 12, it simply means that grey market is expecting Shriram Properties share listing at around 130 ( 118 + 12), which is around 10 per cent higher from its price band of 112 to 118 per equity share. They said that Shriram Properties IPO GMP oscillating in the range of 10 to 15 is an indication that shares of the company will have marginal listing gain on the listing date, which is most likely on 20th December 2021.

However, stock market observers said that GMP is an unofficial data and it has no direct or indirect link with the balance sheet of the company. So, GMP doesn't give any concrete picture about the company's financials. They advised stick with their conviction developed after going through the fundamentals of the company.

Speaking on the fundamentals of Shriram Properties; Abhay Doshi, Founder at UnlistedArena.com said, "On the operational front, revenues have been on a downward trajectory and the company posted losses from last two years. The issue is priced at a multiple of over 2 to its book value. The pricing looks on moderate side but low promoters holding and losses are major concerns of the company."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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