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Thursday, December 10, 2009

Godrej Properties IPO Valuation

Incorporated in 1990, Godrej Properties Limited (GPL) is one of the leading real estate development companies in India based in Mumbai, Maharashtra.

Godrej Properties IPO ValuationIssue Open: Dec 09, 2009. - Dec 11, 2009.
Price Band: Rs. 490 - Rs. 530 Per Equity Share
Minimum Bid Size: 13 Equity Shares
Issue Size: 9429750 equity shares
Issue Size (Rs Crore): Rs. 462.06 - 499.78 Crore
Face Value: Rs 10 Per Equity Share
Issue Type: 100% Book Built Issue IPO
Listing At: BSE, NSE
Maximum Subscription
Amount for Retail Investor: Rs.100000

Incorporated in 1990, Godrej Properties Limited (GPL) is one of the leading real estate development companies in India based in Mumbai, Maharashtra. Godrej Properties currently have real estate development projects in 10 cities in India, which are at various stages of development. Company's business focuses on residential, commercial and township developments.

IPO Grading / Rating
ICRA has assigned a 'ICRA IPO Grade 4' [Grade Four] to the proposed IPO issue of Godrej Properties Ltd (GPL). 'ICRA IPO Grade 4' indicates above average fundamentals. ICRA assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

To invest in IPO or not?
Angel Broking has come out with a research report on Godrej Properties (GPL) IPO (initial public offering). The research firm believes that the IPO is fairly priced and keep a neutral view on it.

Fair NAV for GPL (based on its existing land bank) works out to Rs 469/share. Around 50% of the NAV is derived from its township project in Ahmedabad. We have factored in a 5% price escalation from FY2011E onwards in the construction and capital value for all its residential projects from the current levels, and a 5% correction in Rentals in FY2011E, but a 5% increase from FY2012E onwards for all its commercial and retail projects. We believe that the IPO is fairly priced and keep a neutral view on it. However, investors can look at alternate, existing listed players like Anant Raj, which have a debt-free balance sheet, land at prime locations and is trading at a significant discount to one-year forward NAV", says Angel Stock Broking Trader.

Many stock market broker firms have rated the Godrej properties IPO as expensive and advised to avoid th IPO.

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