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Shriram Properties shares made a weak debut at BSE and NSE today. The realty stock opened at 90 per share levels on NSE, which is 23.7 per cent lower from its issue price of 113 to 118 per equity share. However, the realty stock has shown some recovery post-listing as Shriram Properties share price at NSE is currently trading at 105.70 apiece levels.

Speaking on reasons for weak listing of Shriram Properties shares; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The IPO saw a muted demand on the back of losses where other real estate companies were booming in the last two years. In the upcoming years, real estate is likely to perform better, and only aggressive investors are advised to look at Shriram Properties, while others can opt for Sobha, Prestige or Brigade."

Standing in sync with Santosh Meena's views; Ravi Singhal, Vice Chairman at GCL Securities said, “Weak listing of Shriram Properties shares can be attributed to the negative sentiments of the market on rising Omicron cases in India."

In 3-day bidding from 8th December to 10th December 2021, Shriram Properties IPO was subscribed 4.60 times whereas its retail portion was subscribed 12.72 times. The public issue was susbcribed 1.85 times in the QIB category while it was subscribed 4.82 times in the NII category.

Shriram Properties is a part of the Shriram Group and is one of the leading residential real estate development companies in South India. The company primarily focuses on the mid-market and affordable housing segments.Bengaluru and Chennai are the key markets for the company, however, it has operations in Visakhapatnam, Coimbatore and Kolkata as well.

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