Shriram Properties lists at 20% discount

Mumbai: Real estate developer Shriram Properties made a weak debut on the bourses on Monday amid the slump in the broader markets. The stock listed at ₹94 on the BSE, a 20% discount to its IPO price of ₹118 per share. The stock ended down 15.8% from the IPO price at ₹99.40.

A subsidiary of Shriram Group, Shriram Properties is a south India-based residential real estate developer, primarily focused on the mid-market and affordable housing categories.

Some analysts said more than the weak market, concerns over the lack of profitable track record of the company weighed on its listing. "The company has a strong brand and has diversified into a lower-risk development model. NAV (net asset value) is attractive, but the profitability is not. High-cost debt impacted profits and the company may continue to report losses in the near term," said Geetanjali Kedia, senior research analyst at SPTulsian.com.


Shriram Properties had reported a loss of ₹60.03 crore on a revenue of ₹118.2 crore in the six months ended September this year.

"One should exit the stock, given attractive opportunities in the secondary market, post the recent correction," said Kedia.

The ₹600-crore IPO of Shriram Properties was subscribed 4.6 times at the close of the issue.