Shriram Properties Limited IPO: Issue opens on December 8; what analyst suggests on this Rs 600-crore public offer?

One of the leading players in the real estate, Shriram Properties Limited, will see its IPO opening for subscription on Wednesday. The three-day initial public offering will open on December 8 and concluded on December 10.  

The Chennai-based residential real estate development company is planning to raise Rs 600 crore via the public issue, as per NSE.  

The company has fixed the price band of Rs 113 – Rs 118 for this IPO. Total issue size of Rs 600 crore comprises Rs250 crores of fresh issue and an offer for sale of ₹350. The company has fixed the market lot of 125 shares. Minimum order quantity is one lot and a maximum subscription amount for retail Investor is Rs 2 lakh, while for eligible employees it is Rs 5 lakh.
KFin Technologies Private Limited has been appointed as registrar for this issue.  

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IPO Outlook

As in what should investors should do with this IPO, Angel One Ltd has given a positive outlook towards Shriram Properties Limited IPO.  
Shriram Properties mainly focus on mid-market and affordable housing segment, having some projects in luxury housing also. Along with residential housing companies having presence in commercial office space also.

Leading real estate player in South India
Without rating the IPO, Yash Gupta, Equity Research Analyst, Angel One Ltd, said It is one of the leading players in the residential real-estate market of South India. "For Shriram Properties, Bangalore and Chennai are the key markets along with that company operates in Coimbatore, Visakhapatnam, and Kolkata. As of Q2FY22, the company completed more than 29 projects and had a total portfolio of more than 25 projects with a total 46.72 Mn Sq Ft of salable area. We have a positive outlook towards Shriram Properties Limited IPO," he said.  

Degrowth in revenue 

Furthermore, Gupta highlighted that the company has reported a negative profit after tax of Rs 60 crore in the first half of 2022 along with that it has also reported a negative profit after tax of Rs 68.1 crores in 2021. "Company has reported degrowth in revenue for the past 2 years. In 2021, the company reported revenue of ₹501 crores down by 20.7% from Rs 631.8 crores in 2020," he said.  

Shriram Properties Limited IPO Timeline:  

Opening date: December 8
Closing date: December 10  
Share finalization for allotment: Likel on December 16
Refund Initiation: December 17
Transfer of shares to Demat account: Likely by December 20
Listing on exchange: December 21
Source: Edelweiss app