D B Realty Limited IPO Message Board (Page 5)

db reality in my opinion is another money pump to suck more money.investment on this ipo will need a very careful decision.acc to me it will not be listed more then 520.

Avoid DB Realty IPO: Angel Broking

Angel Broking has come out with a research report on DB Realty IPO. The research firm has recommended avoiding the issue.

The issue of Mumbai-based DB Realty has opened for subscription. The company plans to raise around Rs 1,500 crore from the issue. The price band is at Rs 468-486 per share and the issue will close on February 2, 2010.

Angel Broking report on DB Realty IPO

DB Realty (DBRL), a leading realty player in the Mumbai Metropolitan region, has firmed up development plans for 100mn sq ft with a total saleable area of 60.9 million sq ft (DBRL's share). Around, 65% (40 million sq ft) of its total saleable interest is concentrated in the outskirts of Mumbai (Dahisar, Mira Road, Mahul, Mankhurd, Pune), 6.6% in South Mumbai, 21% in Western Suburbs and rest in Central Mumbai.

We have assumed average realisation of Rs 6,000 per sq ft on DBRL's saleable interest based on its geographical presence, which gives us a Fair NAV of Rs 412/share. Hence, we believe that the IPO is expensive and recommend an Avoid. However, investors could consider alternate, existing listed realty players like Anant Raj and HDIL.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

In D B Realty one should apply or not?

DB realty limited has a potential and will lead

DB realty limited has a iceberg depth and definately will surprise on listing like Godrej Prop

DB Reality, minimum 14*486 shares Application & meximum 196*486=95256 So So company Listed Profit Gain in issue & surprises No any premium in Gray market..ok.

Can anyone please tell me no. of shares and amount for 1 lakh application..?

what is the gremarket premium of db

wht ppl nybody know hows this issue..?
can i investe in this ipo...
give comments on this issue..??

what the grey market for DB?

REAL NII FIGURES OF THANGAMAYIL JEWELLERY LTD IS 3.5484 TIMES & NOT AS 1.5209 TIMES. WHY WAS IT SHOWING 1.5209 TIMES ON NSE & BSE WEB SITE IS A MISTRY. DONE BY WHOM? YOU GUESS ? SO THE REAL FIGURES ARE SEE BELOW. THERE ARE BUYER OF THANGAMAYIL JEWELLERY LTD AT A PREMIUM OF RS 37/- AT AHMEDABAD AND KOSTAK OF RS 3700/-

      OFFERED       BIDS QTY      TIMES

QIB      19,89,465      10,33,280      0.5194

NII       5,96,839      21,18,000      3.5484

RTL      13,92,625      13,50,800      0.9700

CUTOFF       CUTOFF       11,93,520      CUTOFF

TTL      41,07,500      45,88,240      1.1200

Reliance Growth fund & ICICI Prudential life insurance have subscribed to more than 50% of Anchor Investor quota .So they have roped in good quality anchor investors.

This Issue looks the most likely one to be subscribed decently.Already fully subscribed on day one & subscribed about 1.5 times in HNI.Looks like it will get good subscription from HNI.I have given all the Issues a miss.Thought of subscribing to Vascon Engineers but let it go.If this issue gets decent subscription I will apply for this Issue.

SP Tulsian commentry---
Strong Mumbai presence – key to success.
D B Realty is entering the capital market on 29th January, 2010 with a public issue of Rs. 1,500 crores in the price band of Rs. 468 to Rs. 486 per equity Share.



The present equity of the company is at Rs. 211.20 crores, which is likely to get raised to Rs. 243 crores, considering issue made at the lower price band of Rs. 468 per share. This will result in a 13.20% equity dilution and expected to have a market capitalisation of close to Rs. 11,500 crores.



The strong point goes in favour of the promoters of the company are, its strong presence in Mumbai City, especially in Central Mumbai, where selling price rules between Rs. 18,000 to Rs. 25,000 per sq. feet, coupled with almost debt free status and strong execution capability.



The company as on 31st December 09, has 11 ongoing projects with saleable area of 19.51 million square feet, 8 forthcoming projects with saleable area of 19.28 million square feet and 6 upcoming projects of 22.24 million square feet of saleable area. The total area of 61.03 million sq. feet, represents the share of the company. Also, the company has presence in pockets of Mumbai like Jacob Circle (6.22 lakh sq. ft.) Mahalaxmi (14.84 lakh sq. ft.) Andheri (East) (12.49 lakh sq. ft.) Dahisar (16.16 lakh sq. ft.) Goregaon (East) (8.80 lakh sq. ft) Kandivali (West) (4.91 lakh sq.ft.) and Mahul with 87.01 lakh sq. feet. All these projects are being developed in the location most preferred by the prospective buyers, with average selling price in central Mumbai ruling above Rs. 20,000 per sq. feet. Even in suburban Mumbai, all the projects are in the western part, where average selling price is at around Rs. 10,000 per sq. ft.



The promoters of the company have the track record of developing composite housing complexes in the period of 1985 to 2005. About 37 lakh sq. ft. has been developed at Kandivali (West) with about 42 lakh sq. ft. in Goregaon (East). All these projects and complexes are equipped with school, shopping malls, commercial and shopping complexes, multiplexes, community hall, temples, medical centres etc., which has resulted in better saleability and preferred locations of the buyers.



Presently, HDIL has good presence in Mumbai, of which over 50% is in distant suburbs of western Mumbai at Vasai Virar. Also, redevelopment of Mumbai Airport land is in JV with GVK. So all these gives less of development land and more of TDRs, which are largely sold by HDIL. This results in low margin and inspite of this, HDIL has market cap of Rs. 11,000 crores and EV of Rs. 14,500 crores.



The company also has its forthcoming projects coming up at Goregaon, Dahisar, Malad, Mumbai Central, Byculla, Bandra, Kurla Complex and Mira Road. All these projects are going to give very good margins, as also fast selling of the units and apartments. Thus, the company has an advantage and edge of probably the only and largest company, amongst the listed peers, to have such a strong presence in Mumbai. Also, due to saleable area of close to 61 million sq. feet, it should be able to have strong pipeline of projects for next 7-8 years,of which, one third are under development.



Considering all this, due to strong presence in Mumbai coupled with debt free status, issue looks good and recommended even at the upper band of Rs. 486. The issue should be able to give good returns, if held with 6-12 months view, as also listing gains, as it is found to be reasonably priced while comparing it, with its listed peers.



One can subscribe the issue even at the upper band.

Hello people.

This is taken from the new issue monitor of Capital Market.
The rating given by CM which is a balanced rating in most cases is only 30/100.

It clearly says DON'T APPLY.

SUCH COMPANIES WHICH HAVE NO SCRUPLES ARE OUT TO TAKE IPO INVESTORS FOR A RIDE.
LOOK AT THE PRICE AND p/e RATIO.

As everyone is aware the realty sector is not the best sector to invest AT LEAST NOW.
Also look at the number of related party entities in the same line.There will be either book adjustments or siphoning off of investor funds within them.
As of date the interest free loans given by the company to such parties is a whopping Rs 553.56 crores.
And we will be giving this company more funds through the IPO to enable the company to give more such INTEREST FREE LOANS to themselves.

ARE IPO INVESTORS WEARING BLINDFOLDS TO APPLY IN THIS ISSUE

Weaknesses

The company’s operating history is very short, having incorporated in January 2007. The company does not have a record of completion of a project and delivery. It has only projects under construction. However, its promoters have strong experience in the real estate industry, having collectively developed approximately 15.90 million sq ft of real estate spanning across verticals of residential, commercial, retail and hospitality. Though the company has clocked revenue of Rs 434.43 crore for FY 2009, its operating cash flow is negative for that fiscal. This was primarily because of the continuing land development and acquisition expenses, unmatched by revenue streams.

Both the commercial projects among the ongoing projects are to be funded through the IPO proceeds. These commercial projects are likely to be completed by end of CY 2012. Since the commercial projects involve upfront cash outgo towards land and construction, revenues are expected only when the project is leased or sold out, which will happen only at advanced stage of completion. With two long years for completion, there will not be any cash inflow from commercial realty segment.

DB group has 112 companies and 3 partnership firms, with many related party transactions. The company, as of 30 September 2009, had given corporate guarantees for certain debt facilities availed by its related entities, aggregating to nearly Rs 2518.89 crore. This is in excess of the net-worth of the company at Rs 1411.55 crore end September 2009. Out of the total corporate guarantees provided, Rs 1769.26 crore (or 70% of guarantees) has been provided to entities engaged in businesses other than real estate such as hospitality and telecom. Moreover, the company has also made an investment of Rs 705.15 crore in unlisted entities related to it. In addition, the promoters have provided personal guarantees aggregating to approximately Rs 4328.77 crore in connection with certain debt facilities availed by such entities.

DBRL has extended interest-free loans to various entities related to the promoters, amounting to more than Rs 553.56 crore end September 2009. Further, it has not signed written agreements to document the terms and conditions of such loans. Moreover, some of these entities are either incurring losses or have negative net-worth.

Valuation

Incorporated in January 2007, the company has started clocking revenue from FY 2009 from sale of TDR and booking revenue from a couple of projects under construction by way of percentage completion method. Consolidated sales for FY 2009 stood at Rs 464.43 crore and net profit at Rs 145.79 crore. The EPS for FY 2009 stands at Rs 5.8 and Rs 5.9 on post-issue likely equity on the offer price band of Rs 468 at the lower level and Rs 486 at the upper level. The P/E works out to 80.7-82.4 times the offer price band. On the other hand, HDIL quotes at 13.6 times its FY 2009 consolidated earnings.

The enterprise value per million sq ft on the saleable area under construction and forthcoming/ pipeline is Rs 312.94 crore. That of HDIL is about is Rs 345.84 crore. HDIL has a land reserve of 175 million sq ft in the Mumbai metropolitan region compared to 30.72 million sq ft of DBRL.

HDIL beats DB under all parameters.
And you want to apply to DB REALTY to make a quick buck.

BEWARE.DON'T BE SUCKERS

REJECT LIKE YOU DID AQUA.
BOYCOTT SUCH GREEDY PROMOTERS AND THEIR MERCHANT BANKERS

many thanks to all retail investor who had not supported all this recent ipo co.with so much higher valuation. which make them to reduce price band and extend their IPO. now NTPC has to think twice before become greedy and put higher price band

what udayan say about current IPO

Most of them were not great quality payer. I am not talking about DB Realty, which I haven’t looked at but Aqua Logistics with Rs 220-230, they got nothing. Now they have reduced it to Rs 200-220. I do not know what these companies are doing. What will Rs 10-15 will do to the issue price? It reminds me of Wockhardt Hospitals. They did the same routine. Aqua Logistics, if it has to have any hope of going through or listing with not a huge blush needs to peg it back to Rs 150-160.

What are they doing at Rs 200-220? The other issues are too small. They can’t claim to know these companies well. Thangamayil Jewellery, a Tamil Nadu based Jewellery Company is trying to get into retail. It’s not expensive from what earnings per share (EPS) data we have but what do you know about these companies and what their success rates will be. So I am not surprised in this market environment. People do not want to take a punt on this kind of a smallcap name.

Healthcare company––Syncom, seems like an okay pace. Like many other companies they make formulations and do a bit of contract manufacturing on the side. However, they want more than Cipla’s valuations. They want to do an issue at 22-23 times. Which pharmaceutical company in the midcap space sells at 23 PE? I am sure that will not fly as well and if it does it will bomb on listing.

Vascon Engineers at least has some pedigree. It’s an engineering company and the biggest comfort for me is that HDFC owns nearly 15% of that company. HDFC is blueblood. When it owns 15%, it gives a bit of comfort but their engineering is largely related to real estate. So I think there is vastly higher risk category in the infrastructure space. Vascon from this list probably has the highest chance of going through because of the slightly higher pedigree. The others will struggle.

Dear IPO KING,

Do u hv any idea about opening date of these issue

NITESH ESTATE LTD
MAN INFRA
IL&FS TRANSPORT NETWORK
LODHA DEVELOPERS
RELIANCE INFRATEL

Regards,
Vishal

Market is Set to go below 15000. Mark my Words. Don't apply IPO's because all are highly priced. This one is too much highly priced. Avoid this. In corrected market you would easily get this one at Rs300 easily

NOW AVOID TO APPLY IPO'S........ if good ipo it will subscribe higher n times, and we will not get allotment, if ipo subscribe lover n times.. than it will also be risky......... so avoid IPO