NEW DELHI: After a poor opening by RaitGain last week, real estate developer Shriram Properties made a weak debut on the bourses on Monday. The IPO got listed at Rs 90 apiece on the NSE which is 24% discount to the issue price of Rs 118. On the BSE, it got listed at Rs 94.
This weak listing came even as the IPO was subscribed 4.6 times during December 8-10. The stock closed its first session at Rs 99.40 on the BSE and at Rs 98.30 on the NSE. In the on-going IPO rush, a number of IPOs, including the ones seeking a premium valuation or were loss-making, fared poorly on the exchanges. The biggest examples are Paytm, CarTrade and Star Health.
According to Santosh Meena, Head of Research, Swastika Investmart, the IPO of Shriram saw a muted demand on the back of losses where other real estate companies were booming in the last two years. “In the upcoming years, real estate is likely to perform better, and only aggressive investors are advised to look at Shriram Properties, while others can opt for Sobha, Prestige, or Brigade,” added Meena.
Yash Gupta, Equity Research Analyst at Angel One, said the company is trading at price to book value of 1.83 times, which is attractive compared to other listing developers. He suggested investors to hold the stock if they have received the allotment. All eyes are now on MapmyIndia, billionaire Rakesh Jhunjhunwala-backed Metro Brands, MedPlus Health Services and Data Patterns. These IPOS are hitting the bourses this week.