The Mumbai-based real estate developer raised over Rs 1,440 crore through the public float.
DB Realty has joined the list of firms who have failed to generate returns for IPO investors on their debut. The scrip opened at Rs 452, 3% lower than its issue price of Rs 468 (the lower end of the IPO price bracket of Rs 468-486), tanked over 10% before recouping some of its losses and is trading down 5% at the time of posting this report.
The Mumbai-based real estate developer raised over Rs 1,440 crore through the public float (managed by Enam Securities and Kotak Mahindra Capital) soon after the market went into a tailspin correcting 10% from its recent peaks.
DB Realty raised the money for construction and development of certain projects worth Rs 1,045 crore and repayment of loan from IDFC worth Rs 80 crore. The realty firm has outstanding loans of Rs 751 crore.
Investors in DB Realty-- Lehman Brothers, Trinity Capital and IL&FS who owned 5.37% each in the company pre-issue-- have cost of purchase below Rs 200. So, each of them is still sitting on unrealised gains of over 2.3x on their three-year-old investment in the company, as per VCCircle calculations.
Another entity who is making a neat pile is Walkinson Investments Limited, whose antecedents could not be ascertained. It had chipped in with Rs 525 crore through compulsorily convertible debentures in March 2009, which were converted into equity shares of the company last September. At the current price, it is estimated to be sitting on an unrealised gain of 65% on the 11-month-old investment.
Jointly promoted by Vinod Goenka and Shahid Balwa, DB Realty has 10 ongoing projects, aggregating approximately 18.61 million sq ft of saleable area. For the year ended March’09, it had total income of Rs 471 crore with net profit of Rs 145.8 crore. Source: VCCircle
No comments:
Post a Comment