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Home / Markets / Ipo /  Shriram Properties IPO: Latest GMP, subscription status. Should you apply?
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Shriram Properties IPO subscription opened on 8th December 2021 and it going to end on 10th December 2021. So, today is the last date for investors to apply for the public issue. After two days of bidding, the public offer has been subscribed 1.63 times. AS per the Shriram Properties IPO subscription status, the public issue worth 600 crore has been subscribed 8.35 times in the retail category, 0.12 times in the QIB category and 0.18 times in the NII category. After getting fully subscribed in first two days of bidding, Shriram Properties share price has also jumped in the grey market. As per the market observers, shares of Shriram Properties are trading at a premium of 20 in the grey market today.

Shriram Properties IPO GMP

According to market observers, Shriram Properties IPO GMP today is 20, which is double of its grey market premium (GMP) on Thursday. Market observers said that the issue getting fully subscribed and positive sentiment in the stock market could be the two possible reasons for such jump in Shriram Properties IPO grey market premium. They said that Nifty Realty Index has given 10 year breakout and hence those who have long-term time horizon may come in block and apply for the public issue as its subscription will end today evening.

What this GMP mean?

Market observers maintained that grey market premium simply means expected listing gain in the grey market from a public issue. As Shriram Properties IPO GMP today is 20, it means grey market is expecting Shriram Properties share listing at around 138 ( 118 + 20), which is around 17 per cent higher from its price band of 113 to 118 per equity share.

However, stock market experts said GMP is an unofficial data and one should not rely on it too much. They advised investors to look at the balance sheet of the company as it gives concrete picture of a company's financial health.

Shriram Properties IPO: Apply or not?

Giving 'subscribe' tag for aggressive investors; Aayush Agrawal, Sr. Analyst at Swastika Investmart said, "Company's financials have been on a weaker note where revenues of the company are declining while the company turned loss-making since FY20. The company's revenues in FY19 were 723 crore, which fell to 501 crore in FY21, while it made a profit of 48 crore in FY19 and a loss of 67 crore in FY21. Despite strong brand recognition, the company has suffered losses during the COVID, when real estate and housing were booming. Being a loss-making company retail portion is 10 per cent. The IPO is arriving at a P/BV multiple of 2.09 while the industry average is 3.69, which might attract minor listing gain. However, we believe that there are many reputable listed companies such as Sobha, Brigade, Prestige, etc., and only aggressive investors should apply for the IPO."

Giving Shriram Properties IPO review; Abhay Doshi, Founder at UnlistedArena.com said, "The real estate company mainly focuses in key cities of south i.e. Chennai and Bengaluru targeting mid-market and affordable housing categories. On the operational front, revenues have been on a downward trajectory and the company posted losses from last two years. The issue is priced over 2 times to its book value."

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

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