The issue was subscribed 1.13 times by 11.15 am on Thursday. It saw applications for 3,30,21,500 shares against the issue size of 2,93,51,639 shares. The retail quota was subscribed over six times, while the employee quota saw 47 per cent bids. Institutional and HNI quotas saw very few.
Shriram Properties on Tuesday said it raised a little over Rs 268 crore from anchor investors ahead of its initial share sale. The company decided to allocate 2,27,66,949 equity shares to anchor investors at Rs 118 apiece, valuing the transaction size to Rs 268.64 crore, according to a BSE circular.
BNP Paribas Arbitrage, Societe Generale, SBI Life Insurance Co Ltd, HDFC Life Insurance Company, Sundaram Mutual Fund (MF), Aditya Birla Sun Life MF, and HDFC MF are among the anchor investors.
However, analysts are divided on the IPO. Some of them see the issue priced at comparatively very high valuations. Others believe that its growth opportunity compensates for that.
Religare Broking said it is constructive on 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,” it added.
The company has delivered losses for the last two fiscals and in six month-ending September. The last time it delivered profit was in FY19. Considering FY21 Ebitda of Rs 512.44 million on post-issue basis, the company is going to list at EV/Ebitda of 51.84 with the m-cap of Rs 2,001 crore, said analysts at Marwadi Financial Services .
Its peers, namely Sobha and Oberoi realty, are trading at EV/Ebitda of 15.60 and 33,” respectively.
The firm reduced its offer for sale (OFS) size to Rs 350 crore from Rs 550 crore earlier. Now, the IPO size will be Rs 600 crore against Rs 800 crore. This public issue comprises fresh issuance of equity shares worth Rs 250 crore and an OFS of Rs 350 crore.