Shriram Properties sold its shares in the price band of Rs 113-Rs 118 per equity share.Shriram Propertiesshare sale via initial public offering (IPO) was subscribed 4.60 times on the third and final day of its issue, according to subscription data on the stock exchanges.Thereal estate developer plans to raise Rs 600 crore through the issue,which consists of an offer for sale worth Rs 350 crore and fresh issue of Rs 250 crore.On Friday,the portion reserved forretail individual investorswassubscribed 12.71times -the highest among the three groups of investors.The portion set aside for qualified institutional buyers or QIB was subscribed 1.85 times, while the portion reserved for non-institutional investors wassubscribed 4.82times.The company soldits shares in the price band of Rs 113-Rs 118 per equity share.
75 per cent of the issue was reserved for qualified institutional buyers, 15 per cent for high net worth individuals and 10 per cent for retail investors.The company will utilise the IPO proceeds to repay and/ or pre-payment debt and for general corporate purposes.Shriram Properties has proposed partial exit to its four existing investors -- TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital - which hold around 58 per cent stake in the company.Shriram Properties is a part of the Shriram Group and is one of the leading residential real estate development companies in South India.
The company primarily focuses on the mid-market and affordable housing segments.Shriram Properties' total revenues decreased by 21 per centon-year to Rs 501 crore in FY21, impacted by the ongoing pandemic.
Due to COVID-19 pandemic, construction activity had been stalled during the year.
The company has also posted losses in the last two years.Due to its negative earnings, it is not possible to value the company on a PE ratio basis.Given a drop in revenues, negative earnings, uncertain outlook due to the ongoing pandemic, and high valuations, we remain Neutral on the prospects of the issue, SEBI-registered investment advisor INDmoney said in a report.