The IPO of residential realty developer Shriram Properties was subscribed 4.6 times on December 10, the third and final day of the bidding process. The Shriram Properties IPO received bids for 13.5 crore equity shares against the 2.9 crore shares on offer.

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The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.9 times, and that for non-institutional investors 4.8 times. The quota for retail investors saw a booking of 12.7 times.

The price band for the offer was Rs 113-118 apiece. Its shares traded at a premium of Rs 10-20 in the grey market during the IPO, according to data from IPO Watch.

Choice Brokerage recommended subscribing to the IPO since the company demanded a significant discount as compared to peers. The company demanded a P/B multiple of 1.8 times, lesser than that of peers of 4.6 times.

Also Read | Shriram Properties IPO to open today: Key things to know

The company plans to use proceeds from the issue to repay or prepay in full or in part its own and subsidiaries' borrowings. It is also looking for funds for general corporate purposes.

However, GCL Securities has said investors can apply for listing gains as the company is posting losses for the last two years and its revenue has declined significantly since 2019.

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(Edited by : Yashi Gupta)

First Published:Dec 8, 2021 1:17 PM IST