Shriram Properties IPO to open today; should you subscribe?

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Should you subscribe to the Shriram Properties IPO? Here's what brokerages say:

The brokerage has a 'subscribe' rating on the Shriram Properties IPO.

At the upper end of the price band, Shriram Properties is demanding a P/B multiple of 1.8 times, which is at a significant discount to the peer average of 4.6 times, according to Choice Broking.

Ravi Singh, Vice President and Head of Research at ShareIndia, advises investors to book positions on listing day and wait for overall sentiments to turn around.

"Infrastructure, realty, construction and mining are major sectors that are performing well and are going to play an important role in the next market rally. As demand for residential real estate gradually gathers momentum across the country, the southern part of India, where Shriram Properties has a major presence, is leading the revival in the country's real estate market and Shriram Properties," he said.

Investors cannot apply for the Shriram Properties IPO for listing gains but may apply for the long term depending upon their risk appetite, according to Ravi Singhal, Vice Chairman at GCL Securities.

"The company is posting losses for the last two years and its revenue has reduced significantly since 2019. These losses may extend further this year looking at the Omicron scenario. This company is part of the reputed Shriram Group, but that cannot be the only point to apply for this IPO," he said.

Manoj Dalmia, Founder and Director of Proficient Equities, believes one may apply for the Shriram Properties IPO for a listing gain given the current IPO boom.