Oberoi Realty Ltd IPO Message Board (Page 6)

Subramanian why are you writing so much . it looks you have been alloted lot of shares for it and you are very afriad now.

stock will surely go much below issue price on listing

reasons

1)dow jones is down
2)china has increase interest rate for first time since 2007
3)market to go down
4)it was very large issue
5)all hni and retailers will be heavy seller and no buying to come to support the price.
reality stocks are all down. today reality stocks got heavy beating down 2%

you will see stock opening at 10% discount and will close the day 20% down. fair value of stock is 200 rs.

Well Said Mr. Subramanian Nagarajan

Listing at 295+

According to Nirmal Bang:

Oberoi Realty Limited (ORL) is Mumbai based real estate developer mainly focusing on premium segment. It has developed strong brand & have a successful track record in the real estate industry through its contemporary architecture, developing innovative projects, quality construction & strong execution of projects. ORL has a strong project pipeline consist of 8 ongoing and 19 planned projects, which expected to provide a total Saleable Area of approximately 20.5 msf, which provides near term cash flow visibility.

Despite experiencing severe downturn over past 2 years, ORL’s Balance Sheet (BS) has remained healthy. Company has delivered robust and consistent results over the last 3-4 years. Total income has grown at a CAGR of 76%; EBITDA at 90% and net profit at 91% over FY06-10 respectively. ORL’s consistency can be gauge by its profitability which has been over Rs 250 cr in each of the last 3 Fiscal years with positive cash flows, considering down turn of Real Estate Industry from past 2-3 years. Such a strong performance speaks of the company’s capabilities to manage its profits and business during stifling period and presents a sense of security and visibility to shareholders.

Tomorrow must watch newly listings. Tecpro trgt 455(4/5). Indosolar trgt 26(3/5), eros trgt 200(4/5). All trgtr for tomrrw.
SA ;-)

Hem Securities

Valuation

The company is bringing the issue at price band of Rs 253-260 per share which will turn up into p/e multiple of 26-27 on post issue annualized eps of Rs 9.72.
The company has posted strong financials from last few years. Apart from that robust margins as compare to peers and debt free status of company makes it lucrative investment avenue.

Hence we recommend investors to “Subscribe” the issue.

Don't KNow why som many people say to sell the shares..Probably they missed a great oportunity & saying here with frustration

First Choice IPO Analysis:
VALUATION AND RECOMMENDATIONS:

The company has good operating margins. Post issue promoters holding would be 78.1%. Morgan Stanley through its subsidiary will hold 9.5%. The public issue constitutes 12% of post issue capital. The company will have post issue capital of Rs 328.23 cr. The EPS, for FY 10, on the expanded post issue capital comes to Rs 13.70.

At Rs 253 -260, the company is demanding a valuation around 18 times of its FY 10 earnings, on the post issue expanded capital. The issue is attractively priced, taking into consideration the brand equity and operating margin the company has. INVEST.

CRISIL IPO GRADE 4/5.

Listing rs. 400 pe hai. Pakki report hai.

At present Morgan Stanley is having 10.76% stake in the group is also a zero debt firm. Professional comments were assorted on the other hand side the brokerage domiciles suggested promising the issue. Every person settled that the issue is extremely valued.

According to the Investment Advisor, SP Tulsian the evaluation of Oberoi Realty IPO is highly pricey. On the other hand, Manish Bhatt of Prabhudas Lilladher has suggested subscribing for the issue. He recommended that the issue seems to be fine although it is to some extent expensive.

As per advises doled out by the brokerage houses like Angel Broking, Edelweiss and IIFL that the subscribing of the issue although the issue is moderately valued.

it ll open 280-298

Real Estate major Oberoi Realty, which is tapping the primary market to raise funds to develop projects and acquire land or land development rights, has issued 71.21 lakh shares to anc&&&&hor investors at a price of Rs 260 per share (higher end of the price band).

These investors include Fidelity Fund, Sanford C Bernstein Fund, Treasurer of the State of North Carolina Equity Investment, Alliance Berstein India Growth Fund, ACM Berstein, Mirae Asset Investment, ETON Park Intl, PCA India Equity, ICICI Prudential, Birla Sun Life, T Rowe Price, Royal Bank of Scotland and Reliance Capital.

Samjdar logo ko illetrate kahnay walay tumko sayad pata nahi , bandar ka bacha jab mar jata hi tab bhi bandar usko senay say chipkay rahta hi tumhari tarah.

all once r brainless just buy 1000 quantity at opening and get 50000 within 30 minutes after. best luck intra trader

If u want to earn 10-12 thousand bucks, then do invest in Coal India IPO. alltmnt wll nt be given to all. It will list on double as in 2007 pwrgrid listed.
SA :-)

Angel Broking's report: "We remain bullish on the Mumbai realty market and developers listed in that space. Most of the developers are trading at a discount to our one-year forward NAV. However, ORL differentiates itself from its peers on account of having a strong brand, timely execution of projects and quality infrastructure coupled with well capitalised balance sheet. Hence, we expect the company to trade at its one-year forward NAV of Rs295/share. At the higher band of the issue price, the company is trading at 12% discount to our one-year forward NAV. We recommend subscribe to the IPO with a long-term perspective."

And if u want to gain 10-12 thousand bucks in 2 weeks then apply for Coal India Ltd. Alltmnt will not be given to all. It wll list double as another PSU got listed in 2007(pwrgrid).
SA ;-)

Business Line Research Bureau Investors looking to take exposure to players in the Mumbai real estate market can consider investing in the initial public offering of Oberoi Realty.

A sound track record of execution, presence in premium residential development — which is less sensitive to interest rate and market price movements — and a rare feature of almost nil debt bolsters the case for investing in the company.

The company and offer

The offer price band of Rs 253-260, discounts the expected consolidated per-share earnings for FY-11 by 15 times, placing it at a discount to similar sized peers. Smaller Mumbai-based peers such as Godrej Properties and DB Realty, which too tapped the market a while ago, trade at a premium to Oberoi Realty.

Oberoi Realty and its group have a track record of executing over 5 million sq.ft of saleable area in Mumbai, across premium residential, commercial and retail segments. It has over 10 million sq.ft of projects and 20 million sq.ft of planned projects in Mumbai and Pune. The company is not part of the Oberoi Hotels group.

In 2007, a US-based real estate fund, advised by a subsidiary of Morgan Stanley Inc, invested in the company. The IPO proceeds of Rs 1,000 crore will be utilised primarily for construction of ongoing projects, besides for acquisition of land and development rights.

Oberoi Realty and its subsidiaries own close to 80 per cent of the 114 acres of land bank ; unlike the asset-light model (through joint development ) which quite a few real estate developers are now beginning to adopt.

Traditional as this model may seem, holding own land provides advantages on several fronts: One, the company can time its purchases of land based on market prices and develop it at a ripe time. Oberoi for instance, procured much of its land between 2000 and 2005, ahead of surge in land prices. Two, development on owned land allows for reaping returns both on the land itself and on the property developed.

EBITDA margins of over 60 per cent (FY-10), is clearly suggestive of the benefits that the company reaped, at a time when peers have seen a marked shrinkage in margins to 35-50 per cent. Conversely, the joint development model more often entails profit-sharing with the land owner on the project being developed. Three, and most important, holding land reserves provides the flexibility to sell the land to generate cash during tight liquidity conditions.

Oberoi Realty has procured much of its land from corporates such as Novartis, GlaxoSmithKline Pharmaceuticals, where issues related to title may be limited.

Oberoi Realty has been cautious in reducing its exposure to commercial projects and is instead focussing on residential segment; the latter accounting for 60 per cent of ongoing saleable area. That the premium real estate market is less hurt by market declines is evident in the company's financials.

Revenue segments

In FY-09, when most realty players witnessed a 40-60 per cent decline in their net profits, Oberoi restricted this to less than 15 per cent. Profit margins too remained unaffected, suggesting that while volumes may have declined, pricing power remained. The company is also able to command an upfront 20 per cent advance on its residential projects, which helps manage working capital requirements. Besides, commercial rentals also bolster cash flows.

Rentals from commercial and retail properties accounted for 15 per cent of revenues for the June quarter. While rentals may be susceptible to market downturns that the properties are in Mumbai also means that the declines may not be as steep as those witnessed in other cities.

Oberoi Realty also started clocking revenues from its hotel property in Goregaon The company holds some TDRs in one of its projects; which it may develop or sell.

I completely agree with you 488. SP Tulsian don't know how to analyse an IPO, even market.
Investors for oberoi, Accrdng to me it wll list arnd 295.
SA :-)

one foreign corporate body has received 50% of IPO allotment.
Surely they do not invest according to S P TULSYAN's guidance.
This is debt free company and fundamentals are strong.