Shriram Properties' IPO open today — All you need to know

• Shriram Properties primarily focused on mid-market and affordable housing categories.
• The price band of the public issue is ₹113 to ₹118 as the company intends to raise ₹600 crore.
• It has done all the preliminary paperwork for its IPO back in 2018 but later deferred the plans due to the sluggish property market.

The initial public offering (IPO) of realty developer Shriram Properties will open for subscription at 10:00 a.m today, December 8.

The company intends to raise ₹600 crore from this public issue. Nearly ₹250 crore will be raised through the fresh issue, while the remaining ₹350 crore will be raised as offer for sale (OfS) from existing shareholders — including Walton Street Capital, TPG Asia and Omega TC Sabre Holdings.

Shriram Properties is a south India-based company, which is primarily focused on mid-market and affordable housing categories.

The price band of the public issue is ₹113 to ₹118. The Shriram Properties IPO market lot size is 125 shares, priced at ₹14,750 at an upper price range. A retail investor can buy up to 13 lots, costing up to ₹191,750.


The grey market premium (GMP) — a premium amount at which shares are traded in the grey market — was at ₹18 on December 8.

This is Shriram Properties’ second attempt to hit the public market. It had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board Of India (SEBI) in 2018, but later deferred the plans due to sluggish property market. However, some stock brokerages don’t seem to be too excited about this public issue even now.

Saurabh Joshi and Kaushal Thakkar of Marwadi Financial Services have suggested retail investors stay away from the offering as it is “expensive as compared to its peers.”

The company has completed 29 projects, representing 16.76 million square feet of saleable areas, as of September 30 of this year.

“We are constructive on the company's long term growth prospects given the current positive industry growth trends and Shriram's strong brand presence and execution track record. However, improvement in financials would remain a key monitorable for the company," said analysts at Reliagare Broking.

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