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IPO

Shobha developers file for IPO

This Bangalore based developer shall be offloading 9,476,800 equity shares of 10/- each face value (13% of the diluted stake) for a price band of 550-640 from 23th to 29th of Nov-06.

Shobha developers have constructed many prominent buildings that stand in the landscape of Bangalore and PNC Menon (chairman) seeks to raise the funds to go for land acquisition in and around Bangalore.

I did not get a chance to analyze its balance sheet in detail, but my first opinions are as follows:

    Cons

1) It is a Bangalore based construction agency. Considering the cyclical nature of the industry and the fact that shobha is confined to one geographical location, I perceive it might be a risky venture.
2) The price-band is just right. So I do not expect substantial listing gains. In fact if one has patience they might pick up their shares in the open market (over next 3-4months) at under 600. But for a Medium term (1-3years) this company looks like a good bet.

    Pros

1) For those who do not wish to miss the boom in Bangalore real estate, but do not have 50-60 lakhs to invest in a top property, investing in stocks of the leading developer is a very good option.
2) If Shobha advertises it plans to go to Chennai/ Mysore, there should be a big jump in the evaluation and risk mitigation. Investors stand to witness considerable appreciation of value in such a circumstance.
3) Their goodwill and long standing might make them very attractive for foreign partners who would like to seek collaboration when the construction market opens up for MNCs.

Best review at moneycontrol

According to their calculations. The land value held by the company itself exceeds 600/- per stock. Not to mention the value addition to it when the land is converted to a high rise tower. I will put it in a low risk IPO stock which can be comfortably held till it hits 800/- or elapsing of 12 months (which ever is earlier.)

30 replies on “Shobha developers file for IPO”

Usually pre-ipo allotment is reserved for big ticket institutional investors and employees. I do not know much details about it, but I think it would be rather tough to get it a week or so before the actual listing.

@srikanth … You can go to any bank and get a demat account… ICICI, HDFC or sharekhan has NRI demat account facilities. with the demat account number you can apply to both IPO as well as the open market. If you get an online account and link it with your online bank account … you will never have to worry about the fact that you are not in india but abroad

The company signed an MoU with Reliance Energy (REL) in May 2006 to participate in a consortium in response to an expression of interest invited by Andhra Pradesh Industrial Infrastructure Corporation for the development of a business district and trade towers in Hyderabad.

I have subscribed to 150 Nos of Shares @ Rs 640/- each (Rs 96,000/-)in the IPO issue through my Demat Account dated 28.11.2006: Category- Retail) Please let me know when will the shares be allotted, listed and when will the unissued balance amount, if any, be refunded back to me through my Bank. Please reply urgently.

Thanking you,

Yours Faithfully

mukesh chibber

the refund was debited to my account today morning and the allotment was done 2 days ago
The IPO listing date has not been announced but it should be somewhere tomorrow (AT A HUGE LISTING GAINS)

Listing is on 20th December. I am expecting the opening price to be at least 800/-.
The allotment ratio was really bad… I got complete refund.
but overall for every 20 bids there was 1 allotment (retail segment)

I have applied for 80 shares of shobha developers vide application no.22047972. However, no response has been received by me in this regard. My account was debited for the 80 shares i.e Rs. 51,200/- but no refund has come in my account. My ICICI A/c no is 629701087966, mayur vihar branch Delhi. My Demat A/c no 40977398. DP-ID No. IN 302902.
Please look into the matter and inform accordingly.

I have aplied in IPO and 10 Equity Shares Alloted to me I have received the allotment advice and ballance amount refunded to me but it regrett to note that the shares are not credited in my D-mat A/C Client Id No. 10117185 DP ID No.IN300974
reg folio no. CAN No 100616
Bid cum appli Form No. 27889773

Dear Sir,

Vide our application No.17470403, I have not received any communication that is I have neither received the intimation allotment of Shares not I have received any refund.

Please let me know my status.

Thanking you,

Yours faithfully

(Bela M. Shah)

I HAVE APPLIED 150 EQUITY SHARE IN IPO BUT I WASS ALLOTTED ONLY 10 SHARE. MY APPLICATION NO. IS 1405878 AND I GAVE A CHEQUE(CHQUE NO. 695980 OF BANK OF BARODA) OF Rs.96000 IN DECEMBER. AFTER SEVEN MONTH STILL I HAVE NOT GOT MY REST REFUND. PLZ SEND MY REST REFUND AS SOON AS POSSIBLE.

evrything is highly priced.the profit on apartments are 200%that is how mr menon can give gold worth 6 crores to gurvayoor .cost of gullible public.

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