Shriram Properties IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 12th December 2022 - 10:46 am

The Rs.600 crore IPO of Shriram Properties, consisting of a fresh issue of Rs.250 crore and an offer for sale (OFS) of Rs.350 crore, saw decent response on Day-1 and Day-2 of the IPO. As per the combined bid details put out by the BSE at the end of Day-3, Shriram Properties IPO was subscribed 4.60X overall, with strong demand coming only from the retail segment, followed by the HNI segment but limited interest seen in the QIB counters. The issue has closed for subscription on Friday, 10th December.

As of close of 10th December, out of the 293.52 lakh shares on offer in the IPO, Shriram Properties saw bids for 1,351.22 lakh shares. This implies an overall subscription of 4.60X. The granular break-up of subscriptions was dominated by the retail investors. The QIB response was fairly limited even on the last day of the IPO. However, the HNI bids did pick up on the last day of the IPO.

Shriram Properties IPO Subscription Day 3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	1.85 Times
Non Institutional Investors (NII)	4.82 Times
Retail Individuals	12.72 Times
Employees	1.25 Times
Overall	4.60 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 07th December, Shriram Properties did an anchor placement of 2,27,66,949 shares at the upper end of the price band of Rs.118 to 34 anchor investors raising Rs.268.65 crore, representing 44.78% of the total issue size.

The list of QIB anchors included a number of marquee international names like Nomura India Fund, Pioneer Investment Fund, Kuber India Fund and Optimix Wholesale Global Emerging Market Fund. Domestic investors in the anchor placement included Sundaram Mutual Fund, Nippon India Fund, HDFC MF, Aditya Birla Sun Life MF and SBI Life Insurance.

The QIB portion (net of anchor allocation as explained above) has a quota of 158.50 lakh shares of which it has got 293.45 lakh shares bids at the close of Day-3, implying 1.85X subscription for QIBs at the close of Day-3. QIB bids typically get bunched on the last day but the response was fairly tepid, despite the strong anchor day response to the IPO.

HNI / NII Portion

The HNI portion got subscribed 4.82X (getting applications for 382.13 lakh shares against the quota of 79.25 lakh shares). This is a relatively decent response at the close of Day-3 and this segment did see the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a healthier 12.72X at the close of Day-3, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is just 10% in this IPO.

For retail investors; out of the 52.83 lakh shares on offer, valid bids were received for 671.97 lakh shares, which included bids for 511.54 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.113-Rs.118) and has closed for subscription on 10th December 2021.

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