IPO: Shriram Properties listings at 20% off


Mumbai: Real estate developer Shriram Properties made a weak debut on the stock exchanges on Monday amid the collapse of the broader markets. The stock listed at 94 on the ESB, a 20% discount from its IPO price of 118 per share. The stock ended 15.8% lower from the IPO price at 99.40.

A subsidiary of the Shriram Group, Shriram Properties is a residential real estate developer based in South India, primarily focused on the intermediate and affordable housing categories.

Some analysts said more than the weakness in the market, concerns over the company’s lack of profitability history weighed on its listing. “The company has a strong brand and has diversified into a low-risk development model. Net asset value (net asset value) is attractive, but profitability is not. The high cost debt affected profits and the company could continue to record losses in the near future term, ”said Geetanjali Kedia, senior research analyst at SPTulsian.com.

Shriram Properties reported a loss of 60.03 crore on sales of 118.2 crore in the six-month period ended September of this year.

“We should exit the stock, given the exciting opportunities in the secondary market after the recent correction,” Kedia said.

Shriram Properties’ 600 crore IPO was subscribed 4.6 times at the close of the issue.


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