top of page
Search

SHRIRAM PROPERTIES IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Dec 7, 2021
  • 2 min read


IPO Details:


Price Band: 113-118

Cutoff Price: 118


About Company:


Shriram Properties is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. Company is among the top five residential real estate companies in South India in terms of the number of units launched across Tier 1 cities of South India, including Bengaluru, Chennai and Hyderabad. Shriram Properties are also present in the mid-market premium and luxury housing categories, as well as commercial and office space categories in our core markets.


Competitive Strengths:

  1. Part of the Shriram Group and Backed by Marquee Investors.

  2. One of the Leading Residential Real Estate Development Companies in South India with Focus on Mid-market and Affordable Housing Categorie.

  3. Demonstrated Capabilities in Project Identification and Strong Execution Track Record.

  4. Established Strategic Relationships.

  5. Scalable and Asset Light Business Model supported by our Strong Financial Position.

  6. Well Positioned to Benefit from Regulatory and Industry Developments.

  7. Experienced and Professional Management Team


Strategies:

  1. Continued Focus on Mid-Market and Affordable Housing Categories.

  2. Continued Focus on Key Cities in South India.

  3. Strengthen Presence in the Plotted Development Category.

  4. Focus on our Asset Light Business Model, primarily through Development Management.

  5. Develop and Monetize our Project in Kolkata.

  6. Build Scale, Consolidate Position and Enhance our Execution Capabilities to Capitalize on Industry Opportunity.

  7. Continued Focus on Relationships with Financial Investors.


Financial Performance:



Revenue of the profit is decreasing and company is in net loss.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale

  2. Repayment/Pre-payment of borrowings


Competitors Comparison:

After comparing it with the competitors, Shriram Properties IPO seems to be slightly undervalued on the basis of P/B ratio. Company is not profitable, that's why profit can't be computed.


Grey Market Premium:


Our view: GMP of the IPO is not that good. Company seems to be undervalued, but it is not profitable like a few of its competitors. I will not subscribe to this IPO.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

Like and share with others too so that they can get the gist of this IPO.


Comments

bottom of page