Friday, October 1, 2010

Oberoi Realty IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Oberoi Realty, a mumbai based real estate company has come out with an initial public offering (IPO) of 395.62 lakh equity shares. The company is focused on premium developments and on residential projects. The issue will constitute 12% of the fully diluted post issue paid up equity share capital of the company.

The issue will open on October 6 and will close on October 8, 2010. The company has fixed price band of Rs 253 - 260 per share.

Issue proceeds are proposed to be used for construction of ongoing projects and planned projects; acquisition of land or land development rights; and general corporate purposes.

The book running lead managers to the issue are Kotak Mahindra Capital Co Ltd, Enam Securities Pvt Ltd, JP Morgan India Pvt Ltd and Morgan Stanley India Co Pvt Ltd. Link Intime India Pvt Ltd is the registrar.

Recommendation:
CRISIL has assigned Grade 4 to the IPO. We would recommend investors to invest in this IPO. However, if investors get good listing gains (like Career Point IPO), we would recommend investors to encash it rather than keeping invested for long term. Investors will get ample opportunity to invest again. The market is looking over-heated right now. It is best to encash profit at regular intervals.

Subscription:
The IPO has got 12 times subscribed. At the close of the IPO,
QII segment got subscribed 22.15 times
NII segment got subscribed 3.61 times
Retail segment got subscribed 0.94 times

Allotment:
Click here to check if you have been alloted Oberoi Realty shares!

Listing:
Oberoi Realty got listed on 20th November, 2010. The stock closed at Rs 280.15, with a premium of 7.75% over an issue price of Rs 260 a share. It has touched an intraday high of Rs 299 and low of Rs 271.10, which was also the opening price.


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