Shares of Shriram Properties made a disappointing debut on Dalal Street on Monday after its initial public offering (IPO) had received a decent response.
The realty company’s stock listed at Rs 90 on the National Stock Exchange (NSE) at a discount of 23.74 per cent in comparison to its issue price of Rs 118. On the Bombay Stock Exchange, the stock listed at Rs 94 or a discount of 20 per cent.
Shares of the company recovered marginally by 11 am as the price on the NSE and BSE went up to Rs 102. However, the shares of Shriram Properties were still down 13 per cent.
The weak listing is in line with the grey market premium (GMP) of the IPO a day ahead of the listing. On the grey market, Shriram Properties IPO was trading at a discount of Rs 10-15. While a muted listing was on cards, the weak market sentiment could have also played a role in dampening prospects further.
The company’s Rs 600 IPO was open for subscription for 3 days from December 8-10. The price band of the IPO was fixed at Rs 113-118 per share. On the final day, the public issue was subscribed 4.60 times, signaling decent demand.
Shriram Properties was incorporated in 2000 and is a part of the Shriram Group. It is one of the leading residential real estate development companies in South India. The company mainly focuses on the mid-market and affordable housing segments. It also has a presence in the mid-market premium and luxury housing categories as well as the commercial and office space categories.