DB Realty IPO Information & Analysis
The stock investment research team of Angel has recommended to avoid 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.
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 salable 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.
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