The issue was subscribed 4.6 times at 5:00 pm. It saw applications for 13,51,21,875 shares against the issue size of 2,93,51,639 shares. Retail quota was subscribed 12.7 times, while employees quota was fully subscribed. The portion for institutional investors was subscribed 1.85 times and for HNI bidders it was 4.8 times.
On Tuesday, a day ahead of its IPO, Shriram Properties raised Rs 268.64 crore from anchor investors as it allocated 2,27,66,949 equity shares at Rs 118 apiece, 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.
Analysts are, however, divided on the issue. Some of them see the IPO priced at comparatively high valuations while others believe that its growth opportunity compensates for that.
Religare Broking said it is 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,” it added.
The company has consistently delivered losses for the last two fiscals and in the six month-ending September. Last time it delivered profit was in FY19.
Analysts at Marwadi Financial Services said 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 market cap of Rs 2001 crore. 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 size to Rs 350 crore from Rs 550 crore earlier. Now, the IPO size will be Rs 600 crore against Rs 800 crore earlier. This public issue comprises fresh issuance of equity shares worth Rs 250 crore and an offer for sale (OFS) of Rs 350 crore.