Anagram recommends DB Realty IPO at upper band
Anagram Stock Broking has recommended DB Realty IPO at the upper band of Rs 486. It expects the issue to give good returns in 6-12 months time.
By ET Bureau |
MUMBAI: Anagram Stock Broking has recommended DB Realty IPO at the upper band of Rs 486. It expects the issue to give good returns in 6-12 months time.
“DB Realty a Mumbai based real estate developer with a land bank of around 61 million square feet is coming up with the IPO to raise around Rs 1500 crore. The strong point goes in favour of the promoters of the company are, its strong presence in Mumbai City, especially in Central Mumbai, where selling price rules between Rs. 18,000 to Rs. 25,000 per sq. feet, coupled with almost debt free status and strong execution capability.
The promoters of the company have the track record of developing composite housing complexes in the period of 1985 to 2005. About 37 lakh sq. ft. has been developed at Kandivali (West) with about 42 lakh sq. ft. in Goregaon (East). All these projects and complexes are equipped with school, shopping malls, commercial and shopping complexes, multiplexes, community hall, temples, medical centres, which has resulted in better saleability and preferred locations of the buyers.
The company also has its forthcoming projects coming up at Goregaon, Dahisar, Malad, Mumbai Central, Byculla, Bandra, Kurla Complex and Mira Road. All these projects are going to give very good margins, as also fast selling of the units and apartments.
Thus, the company has an advantage and edge of probably the only and largest company, amongst the listed peers, to have such a strong presence in Mumbai. Also, due to saleable area of close to 61 million sq. feet, it should be able to have strong pipeline of projects for next 7-8 years, of which, one third are under development.
Considering all these factors, due to strong presence in Mumbai coupled with debt free status, issue looks good and we recommend this IPO at the upper band of Rs 486. The issue should be able to give good returns, if held with a 6-12 months view, as also listing gains, as it is found to be reasonably priced while comparing it, with its listed peers,” the IPO note said.
“DB Realty a Mumbai based real estate developer with a land bank of around 61 million square feet is coming up with the IPO to raise around Rs 1500 crore. The strong point goes in favour of the promoters of the company are, its strong presence in Mumbai City, especially in Central Mumbai, where selling price rules between Rs. 18,000 to Rs. 25,000 per sq. feet, coupled with almost debt free status and strong execution capability.
The promoters of the company have the track record of developing composite housing complexes in the period of 1985 to 2005. About 37 lakh sq. ft. has been developed at Kandivali (West) with about 42 lakh sq. ft. in Goregaon (East). All these projects and complexes are equipped with school, shopping malls, commercial and shopping complexes, multiplexes, community hall, temples, medical centres, which has resulted in better saleability and preferred locations of the buyers.
The company also has its forthcoming projects coming up at Goregaon, Dahisar, Malad, Mumbai Central, Byculla, Bandra, Kurla Complex and Mira Road. All these projects are going to give very good margins, as also fast selling of the units and apartments.
Thus, the company has an advantage and edge of probably the only and largest company, amongst the listed peers, to have such a strong presence in Mumbai. Also, due to saleable area of close to 61 million sq. feet, it should be able to have strong pipeline of projects for next 7-8 years, of which, one third are under development.
Considering all these factors, due to strong presence in Mumbai coupled with debt free status, issue looks good and we recommend this IPO at the upper band of Rs 486. The issue should be able to give good returns, if held with a 6-12 months view, as also listing gains, as it is found to be reasonably priced while comparing it, with its listed peers,” the IPO note said.
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