Shriram Properties Privat Limited is a subsidiary of the Shriram Group of Companies, a financial conglomerate worth INR 90,000 crore with a large footprint in South India. Shriram Properties is a major real estate developer with ventures in Bengaluru, Chennai, Kolkata, Coimbatore, and Vizag. Shriram Properties IPO will hit the market in 08 December 2021.
Table of Contents
About
It was founded in 1995 and has its head office in Bengaluru. It has completed more than 12.5 million square feet of construction, with a total capacity of 54.76 million square feet. Apartments, villas, and villaments are among their designs.
Vision
Shriram Properties, as a customer-centric business, committed to delivering confidence through simple living and high thinking. Their goal is to provide realistic residential apartments and commercial buildings that are both functional and cost-effective.
Although all Shriram Projects are architectural and technical marvels, what sets them apart from the rest is that every piece of interaction is closely linked to their customers, which is exactly what we want.
Shriram Properties is effectively operated and has secured TUV CERT – RWTUV Systems GmbH’s ISO 9001: 2000 certification. In addition, from 2013 to 2015, we won the Assocham Award three times in a row for being the Best Builder in the Southern Area, among other things.
Growth
In the year 2000, they started operations in Bengaluru and have since extended to other areas in South India, including Chennai, Coimbatore, and Visakhapatnam.
They also have a foothold in Kolkata, East India, where we are working on a huge mixed-use development. Bengaluru and Chennai are two of their most important marketplaces.
These cities are one of India’s two most important residential housing markets, accounting for roughly 29.70 percent of India’s new home launches during 2012 and 2020 and 28.57 percent of the country’s sold inventory during 2018 and 2020.
Current Portfolio
Furthermore, as of December 31, 2020, they have a whole portfolio of 35 projects including Ongoing Projects, Projects Under Development, and Forthcoming Projects with a total projected Marketable Size of 46.74 million square feet.
As of December 31, 2020, our inventory comprises of 21 ongoing projects, 9 under development projects and 5 upcoming projects, accounting for 52.08 percent, 20.85 percent, and 27.07 percent of our total projected Saleable Area, accordingly.
Furthermore, the mid-market and economical residential categories together accounting for 70.74 percent of their total projected Saleable Area (mid-market and inexpensive housing accounting for 34.94 percent and 35.80 percent, correspondingly) among these projects.
Shriram Properties IPO
Shriram Properties, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 800 crore on 09 April, 2021.
The Offer includes a fresh equity of Rs. 250 crore and an offer for sale(OFS) up to Rs. 550 cr. value equity shares of face value of 10 per share, by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 22 June, 2021 to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 3,280.20 | 3,404.29 | 3,371.35 | 3,285.44 | |
| Total Revenue | 343.98 | 631.84 | 723.78 | 419.76 | |
| Profit After Tax | (65.02) | (86.39) | 48.79 | 343.01 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | (5.80) | (5.80) | 3 |
| Financial Year 2019 | 3.39 | 3.38 | 2 |
| Financial Year 2018 | 23.15 | 23.15 | 1 |
| Weighted Average | 2.09 | 2.09 | |
| (9 months) Dec. 31, 2020 | (4.38) | (4.38) | – |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The Offer
- The company is backed by Marquee Investors and is member of the Shriram Group.
- Among the South India ‘s major residential real estate development firms, specializing in mid market and economical property.
- Demonstrated Project Assessment Skills and an Established Track Record of Performance.
- Connections that have been developed on a fundamental basis.
- Their solid financial condition supports a flexible and asset-light business plan.
- Legal and business trends are well placed to favor the company.
- Skilled and seasoned management group.
Previous IPO plans
After getting confirmation from the Securities and Exchange Board of India (SEBI) in 2019, the Shriram Group expected to collect Rs 1,250 crore in 2018-19. As per the news report, the sum to be collected was lowered to Rs 750 crore last year.
Shriram Properties IPO Details
| IPO Opening Date | 08 December 2021 |
| IPO Closing Date | 10 December 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 113 to 118 per equity share |
| Market Lot | 125 |
| Min Amount | 14,750 |
| Listing At | BSE, NSE |
| Issue Size | 800 cr. |
| Fresh Issue | 250 cr. |
| Offer for Sale | 550 cr. |
IPO Tentative Date
Shriram Properties IPO opening Date is 08 December 2021, and the closing date is 10 December 2021. The issue may list on 20 December 2021.
| IPO Open Date | 08 December 2021 |
| IPO Close Date | 10 December 2021 |
| Basis of Allotment Date | 15 December 2021 |
| Initiation of Refunds | 16 December 2021 |
| Credit of Shares to Demat Account | 17 December 2021 |
| IPO Listing Date | 20 December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot |
Shriram Properties IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Shriram properties IPO.
Shriram Properties IPO GMP
Shriram properties IPO Grey market premium is INR 0. You can check out other IPOs GMP on below Links.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 19 December 2021 | No Trade | No Trade | No Trade |
| 18 December 2021 | No Trade | No Trade | No Trade |
| 17 December 2021 | No Trade | No Trade | No Trade |
| 16 December 2021 | 13 | 2100 | 250 |
| 15 December 2021 | 9 | 1000 | 100 |
| 14 December 2021 | 11 | 1400 | 150 |
| 13 December 2021 | 12 | 1600 | 200 |
| 12 December 2021 | 14 | 1700 | 200 |
| 11 December 2021 | 20 | 4100 | 450 |
| 10 December 2021 | 17 | 1900 | 200 |
| 09 December 2021 | 21 | 3900 | 400 |
| 08 December 2021 | 25 | 3400 | 350 |
| 07 December 2021 | 22 | 2900 | 300 |
| 06 December 2021 | 22 | 2300 | 250 |
| 05 December 2021 | 27 | ||
| 04 December 2021 | 32 |
Check Out the GMP of all Other IPOs
Shriram Properties IPO Review
If you are looking for answer of Shriram Properties IPO is good or bad then here is the answer, You can apply for the decent listing gain as well long with a term view. The promoters are well known and company is acquiring some new areas for growth.
Shriram Properties IPO Risk
- The success of the real estate market in India, in term, and specifically in South India, has a substantial impact on their company and income. Market circumstances may have an impact on their capacity to sell their projects at projected prices, resulting in lower revenues and profitability.
- The impact of COVID-19 illness on their business and operations in the coming is unknown and impossible to predict.
- Their real estate development efforts are centred in South India’s major cities. As a result, we are vulnerable to economic, legislative, and other developments in South India, and natural calamities.
Other Threats
- They focus heavily on their residential development business, especially in the mid-market and low income housing segments, and their capability to identify and react to customer needs is essential to their performance
- Their company, financial performance, and results of activities may be negatively impacted if we are unable to maintain to gain from their connection with their Promoters and the Shriram Group and the “Shriram” brand.
- Substantial rises in the cost of labour and essential building products, as well as shortfalls or disruptions in availability, might influence our anticipated construction costs and schedules, leading in cost overruns and reducing their earnings.
Shriram Properties IPO Brokerage View
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Shriram Properties IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 08 December 2021 | 1 | 0.00 | 0.04 | 4.85 | 0.36 | 0.89 |
| 09 December 2021 | 2 | 0.13 | 0.19 | 8.72 | 0.82 | 1.70 |
| 10 December 2021 | 3 | 1.93 | 5.04 | 13.28 | 1.31 | 4.81 |
Shriram Properties IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Sobha Limited | 14.96 |
| 2 | Prestige Estates Projects Limited | 28.98 |
| 3 | Brigade Enterprises Limited | 42.14 |
| 4 | Godrej Properties Limited | 126.16 |
| 5 | Oberoi Realty Limited | 29.37 |
| 6 | Sunteck Realty Limited | 40.88 |
Promoters
- M. Murali
- Shriram properties Holding Private Limited
- Shriram Group Executives Welfare Trust
Promoter Holding
| Pre Issue Share Holding | 31.98% |
| Post Issue Share Holding |
Shriram Properties IPO Prospectus
Contact Details
Shriram Properties Private Limited
Tel : 044 – 4350 2200
E-mail : [email protected]
Website: https://www.shriramproperties.com/
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: : [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Axis Capital Limited
- ICICI Securities Ltd
- Nomura Financial Advisory and Securities (India) Private Limited
We hope we are able to answer all your questions about Shriram Properties IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Shriram properties Limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Shriram properties IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Shriram Properties IPO Opening Date?
Shriram Properties IPO will open in 08 December 2021.
Shriram Properties IPO Listing Date?
Shriram Properties IPO will list in 20 December 2021.
Shriram Properties IPO GMP Today?
Shriram Properties IPO Grey Market Premium is INR 0.
Shriram Properties IPO Allotment Date?
Shriram Properties IPO basis of allotment will be in 15 December 2021.
Lot size for Shriram Properties IPO?
Lot size for IPO is 125.
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