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Shriram Properties IPO: GMP (grey market premium) signals marginal listing gain

Shriram Properties IPO GMP today is  ₹15, it means grey market is expecting that Shriram Properties shares will open at  ₹133 ( ₹118 +  ₹15), believe stock market observers. Photo: Courtesy Shriram Properties websitePremium
Shriram Properties IPO GMP today is 15, it means grey market is expecting that Shriram Properties shares will open at 133 ( 118 + 15), believe stock market observers. Photo: Courtesy Shriram Properties website

  • Shriram Properties IPO GMP today is 15, which is 3 lower from its Friday grey market premium of 18, say market observers

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Shriram Properties IPO listing date: Shares of Shriram Properties are going to list on NSE and BSE on 20th December 2021. While allottees are busy calculating about the listing gain they can expect from the real estate company on its listing date, grey market is signaling marginal listing gain from the public issue. According to market observers, shares of Shriram Properties are available at a premium of 15 in grey market today, which is around 10 per cent higher from upper price band of 118 per equity share.

Shriram Properties IPO GMP

Market observers said that Shriram Properties IPO GMP today is 15, which is 3 lower from its Friday grey market premium (GMP) of 18. They said that for the last 4 days, Shriram Properties IPO grey market price has been oscillating in between 14 to 20, which reflects that allottees may have marginal gain of around 10 per cent on Shriram Properties IPO listing date i.e. 20th December 2021.

What this GMP mean?

According to market observers, grey market premium is an unofficial data that reflects about the probable listing gain expected from an IPO. As Shriram Properties IPO GMP today is 15, it means grey market is expecting that Shriram Properties shares will open at 133 ( 118 + 15), which is near 10 per cent higher from its price band of 113 to 118 per equity share.

However, stock market experts said that GMP is not the right way of calculating expecting listing gain from an IPO as grey market date is completely unofficial and non-regulated. It involves those people too who have their stake involved in the public issue. So, one should look at the balance sheet of the company as its financials that matters most in success or failure of a public issue.

Highlighting upon the financials of Shriram Properties; Aayush Agrawal, Sr. Analyst at Swastika Investmart Ltd said, "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 of 2.09x while the industry average is 3.69x which might attract minor listing gain."

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. The company is also present in the midmarket premium and luxury housing categories as well as commercial and office space categories. Bengaluru and Chennai are the key markets for the company. The company also has operations in Coimbatore, Visakhapatnam, and Kolkata.

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

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