IPO Listing Review
Issue details -
Shriram Properties, part of the Shriram Group and one of the leading residential real estate development companies in south India, listed 20% below the issue price of ₹113 apiece
good response from investors as the offer was subscribed 4.6 times during December 8-10, 2021. Retail investors showed strong interest in the company as their reserved portion was subscribed 12.72 times, followed by non-institutional investors whose allotted quota was booked 4.82 times.
The company has reported losses for two consecutive years because its business operations were impacted by COVID-19 induced lockdown and restrictions.
SPL has a total portfolio of 35 projects in ongoing projects, projects under development and forthcoming projects aggregating to 46.72 million square feet of estimated saleable Area.
Recommendation -
It is among the top five residential real estate companies in South India in terms of number of units launched between the calendar years 2012 and the third quarter of 2021 across Tier 1 cities of South India including Bengaluru, Chennai and Hyderabad.
strong parentage, demonstrated capabilities in project identification, strong execution track record, development portfolio comprises of 35 projects, scalable and asset light business model, and decent financial performance make it a compelling buy if it falls below 70 levels post exit of Anchor investors.
Anchor investors have a 13.4% Lock-in period ends January 14.
Any sharp decline in prices should be considered as a buying opportunity to add on declines.