Sector Real Estate
Transaction 100% Book Building
Issue Size 3,95,62,000 equity shares of Rs 10 each
12.00% of the fully diluted post issue paid-up capital
IPO Dates 6th October 2010 – 8th October 2010
Price Band Rs 253 to Rs 260
Bid Lot 20 equity shares and in multiples of 20
IPO Grading CRISIL - 4 Above Average Fundamentals
Exchanges BSE; NSE
BRLM Kotak Mahindra Capital Company Limited; Enam Securities Private Ltd;
J .P. Morgan India Private Limited; Morgan Stanley India Company Private
Ltd
Registrar Link Intime India Private LimitedObjects of the Issue
Object of the Issue
Construction of their Ongoing projects (Rs 7410 mn from the IPO)
Acquisition of land or land development rights (Rs 2250 mn from the IPO)
General Corporate Purposes.
The Business
They are a real estate development company operating in Mumbai, focused on premium developments. While their focus is on residential projects, they have a diversified portfolio of projects covering key segments of the real estate market, which target the upper end of the
respective income or market segment. They develop residential, office space, retail, hospitality and social infrastructure projects in mixed-use and single-segment developments. By integrating residential projects with office space, retail, hospitality or social infrastructure projects, they
seek to create “destination developments”, which they believe enhance the desirability of their residential units.
They currently follow:
Sale Model – For their Residential Projects
Lease Model – For a portion of their office space and retail projects
Operating Agreement Model – For their hospitality projects whereby the hotel is owned by them and operated by a hotel chain.
(Source: Red Herring Prospectus)As of June 30, 2010, they own
976,679 square feet of Saleable Area of their Completed office space and retail projects (including 58,898 square feet of Saleable Area which is occupied by them), which follow the lease model,
381,820 square feet of Saleable Area of their Completed hospitality project, which follows the operating agreement model
They currently have 13 Ongoing and 11 Planned projects, which they expect to provide a total Saleable Area of approximately 20,254,814 square feet. The estimated Saleable Area of their Ongoing and Planned projects as of June 30, 2010 is:
The following table identifies the development sites being (or will be) developed by each of the entities or joint ventures identified above:
Strengths
Strong presence in Mumbai
Established brand and reputation
Strong project pipeline providing near term cash flow
visibility
Cash flow stability from their rental properties
Strong and stable management team with proven ability
Financial strength
Their proven execution capabilities
Scalability due to their outsourcing model
Strategy
Continued focus on large developments in Mumbai
Flexibility in capital investment and mode of development
Continue to strengthen relationships with key service providers
Balanced revenue generation model for cash flow visibility
Aspirational developments
Their Land Reserves - As of June 30, 2010, their land reserves aggregated approximately 113.96 acres. Their land reserves are located in and around Mumbai and Pune. The following is a summary of their land reserves as of June 30, 2010
(Source: Red Herring Prospectus)
Registered Office: Commerz, 3rd Floor, International Business Park, Oberoi Garden City, Off Western Express Highway, Goregaon (East), Mumbai 400 063
* Assuming none of the existing shareholders participate in the Issue.
# The post-Issue shareholding has been computed assuming full dilution on account of vesting and exercise of the options that may be/ have been granted in accordance with the ESOP 2009.
Promoters
Individual
Vikas Oberoi - Chairman cum Managing Director
Promoter Group
Natural Persons – 9 entities
Companies – 9 entities
Partnerships – 5 entities
HUFs – 1 entity
(Source: Red Herring Prospectus)
(Source: Red Herring Prospectus)
(Source: Red Herring Prospectus)
Source: Capital Markets, Volume XXV/15 dated September 20 – October 3, 2010 (Industry-Construction). Except Oberoi Realty Limited
*Based on the consolidated restated financial statements for the year ended March 31, 2010.
(Source: Red Herring Prospectus)
Please refer to Red Herring Prospectus for Risk Factors.
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultantrs Pvt Ltd
No comments:
Post a Comment