Shares of real estate firm Shriram Properties will list on the bourses tomorrow, December 20. They will be listed both on the National stock exchange (NSE) and Bombay stock exchange (BSE).
Counted among the top five residential real estate developers in southern India, Shriram Properties’ initial public offer (IPO) was subscribed 4.6 times, with retail investors bidding 12.7 times, while non-institutional and qualified institutional investors’ portions were subscribed 4.8 and 1.8 times respectively.
The IPO had opened for subscription on December 8 and closed on December 10, 2021. The company had launched the public issue to raise Rs 600 crore from the primary market.
However, despite having received decent subscription, the company’s shares are trading at a premium of around Rs 10 only in the grey market, according to analysts.
They claim that with several options available in the primary market, investors have not shown enthusiasm in Shriram Properties IPO.
Rise in omicron variant cases in the past couple of weeks and the probability of a possible third wave of Coronavirus related cases, arriving in the country, is being termed as a major reason behind the dipping interest in the company’s shares in the grey market by investors.
This may have an impact on Shriram Properties’ shares’ debut on the bourses on Monday, December 20, 2021.