Sobha Developers Ltd IPO Message Board (Page 6)

Is anyboudy advice @ Share application. Is it good? if yes, then for how many share should apply (For getting Firm allotment)

Sobha Developers Ltd. bidding status as on 24-Nov-2006 17:00:00 IST

No. of times issue is subscribed 2.06

how maney times the issue is oversubscribed by now ?

should one apply for SDL

Should we apply for shobha or not ? If yes for how many times ? I gues cut-off is too high in compare to Parsvnath.
Wht u say ?

Good Issue, strong balance sheet,will list definetely on premium of Rs.100/ to 200/-

To sustain and grow over this offer price would be a big challenge for Sobha, especially in view of the real estate softening in the next 12-24 months time frame.

Angel Broking - Valuation and Outlook of Sobha Developers IPO

The company is in a high growth area of real estate development, which offers tremendous opportunities. It has about 118.1 mn square feet of development rights and is entering newer geographies and plans to diversify the project portfolio by developing hotels, malls, multiplexes, shopping complexes and integrated townships.

For the six months ended September, 2006 the company’s net sales stood at Rs 83.2cr, while it reported a PAT of Rs 54cr. For the FY2006, on a post diluted equity base, the company has an EPS of Rs 12.2 and Price to book value of 3.4x. In terms of P/E ratio the stock trades at 44.9x at the lower price band and at 52.2x at the higher price band of Rs 640. Given the high growth and future prospects of the company, we recommend investors to Subscribe to the issue.

public issue is very best.

Money Times:
Sobha Developers Ltd. (SDL), a leading real estate development and construction company engaged in residential and commercial development will make an IPO of 8,893,332 of its equity shares of Rs.10 each at a price band of Rs.550 – Rs.640 per equity share though the 100% Book Building Process. The issue is scheduled to open on Thursday, 23rd November and close on Wednesday, 29th November’06.

Promoted by Mr. P.N.C Menon and Mrs. Sobha Menon, SDL has an unique backward integrated construction and development business with competencies and in-house resources capable of delivering a project from conceptualization to completion and has constructed 21 residential projects covering 2.98 million sq. ft. in Bangalore, 75 contractual projects covering approximately 8.42 million sq. ft. in eight Indian states and two commercial projects aggregating about 2,747 acres in Bangalore, Mysore, Pune, Chennai, Cochin, Thrissur and Coimbatore.

SDL’s revenue and PAT increased from Rs.117.7 cr. and Rs.1.23 cr. for FY03 to Rs.628.4 cr. and Rs.89.2 cr. respectively for FY06. For the six months period ended 30th September’06, the total revenue was PAT was Rs.532.8 cr. and Rs.53.9 cr. compared to Rs.262.9 cr. and Rs.23.2 cr. respectively for the corresponding six months period ended 30th September’05.

Price (Rs.640/-) seems too high. I doubt very much that the listing may be below the aforesaid price. Parsvnath Developers, engaged in the same business has kept the up price Rs.300/-. That is digestible.

Sobha Developers Ltd. (SDL) said that IPO proceeds will be used to finance land acquisitions, construction and development of existing and proposed residential projects and for retiring certain loans.

SDL has land reserves of about 2,747 acres in Bangalore, Mysore, Pune, Chennai, Cochin, Thrissur and Coimbatore. Having established its core competency in the IT arena through projects for Infosys, Sobha is also exploring the opportunity of setting up an IT SEZ in Chennai.

PNC Menon-promoted Sobha’s total revenues and PAT were Rs 628.43 crore (Rs 6.28 billion) and Rs 89.23 crore (Rs 892.3 million), respectively in FY06. For the first six months of the current fiscal, the company had consolidated revenues of Rs 532.84 crore (Rs 5.32 billion) and Rs 53.97 crore (Rs 539.7 million) of net profit. (RTTNews)