The maiden public offer of Shriram Properties, the south-based real estate developer, has received bids for 13.51 crore equity shares against the IPO size of 2.93 crore equity shares, subscribing 4.60 times on the final day, December 10.
The issue continued to get healthy response from retail investors, whose reserved portion was subscribed 12.72 times, while the part set aside for employees was subscribed 1.25 times.
Non-institutional investors have put in bids 4.82 times the reserved portion, and qualified institutional buyers (QIBs) have bought shares 1.85 times the allotted portion.
Generally, the QIB allotted quota has to get at least 90 percent subscription.
The company has reserved 75 percent of the offer size for QIBs, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Also read - Shriram Properties IPO. Should you subscribe?
This public issue will fetch Shriram Properties Rs 600 crore. It comprises a fresh issuance of shares worth Rs 250 crore and an offer for sale of Rs 350 crore. The company has mobilised Rs 268.65 crore from anchor investors at Rs 118 per equity share.
"Based on H1FY2022 numbers, the IPO is priced at a price-to-book value of 2.28 times at the upper price band of the IPO, which is in line with the listed peer group," said Yash Gupta, Equity Research Analyst at Angel One.
The company is one of the leading residential real-estate developers in south India and focuses on mid-market and affordable housing categories. "We believe that the company has strong track record of delivering the project on time and can maintain strong execution which will get reflected in the pre-sales numbers going ahead. Hence, we are assigning a “subscribe” recommendation to the Shriram Properties IPO," he said.
Also read - Shriram Properties IPO: 10 things to know before subscribing to the issue
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