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Real-estate developer Shriram Properties, part of Shriram Group, is set to roll out its initial public offering (IPO) for public subscription on Wednesday which will conclude on December 10. The price band has been fixed at 113-118 per share. Shriram Properties has raised a little over 268 crore from anchor investors ahead of its IPO.

As of 10:50 pm on day 3, Shriram Properties IPO has been subscribed 1.79 times with retail category overbooked 9.24 times, NIIs bid 0.21x and QIBs 0.12 times, BSE data showed.

This public issue comprises fresh issuance of equity shares worth 250 crore and an offer for sale (OFS) of 350 crore. The firm has reduced its offer for sale size to 350 crore from 550 crore earlier.

As per market observers, Shriram Properties shares are commanding a premium (GMP) of 20 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on December 20, 2021.

Assigning a ‘Subscribe’ rating for the issue, analysts at Choice Broking said that “SPL is among the leading residential real estate development companies in South India, with presence in key South India markets of Bengaluru and Chennai. These two cities are among the two key residential housing markets in India and will continue to be among the top cities in terms of growth. SPL’s business was severely impacted during the second wave of the pandemic and thus is likely to perform relatively better in the coming quarters."

The company plans to utilise the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes.

“At the upper price band of the IPO, the IPO price is in line with the listed peer group. We believe that the company has a strong track record of delivering the project on time and can maintain strong execution which will get reflected in the pre-sales numbers going ahead. Hence, we are assigning a “SUBSCRIBE" recommendation to the Shriram Properties Limited IPO," said Angel One in a note.

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