Godrej Properties has a dream debut
Economic Times, January 6, 2010, Page 16
Stock Surges 9% To Close At Rs 535 On BSE; 20% Of Equity Traded On The First Day
Our Bureau MUMBAI
THE new year has begun on a positive note for new listings. After JSW Energy, yet another public issue — Godrej Properties — made its debut on bourses at a premium to the offer price on the back of good investor participation in trading of the shares.
This is unlike the response to some of the high-profile initial public offerings (IPO) last year that attracted huge subscription but failed to deliver positive returns on listing and subsequently. Godrej Properties shares saw heavy trading during initial trading hours, which lifted the share price to an intra-day high of 586.7. As the day progressed, the stock lost some ground to touch the day’s low of Rs 500 before ending with a gain of 9% at Rs 535 on BSE on Tuesday. The gains were supported by huge volumes as a total of 1.4 crore shares, or 20% of the company’s equity, changed hands both on BSE and NSE.
Analysts have positive views about the long-term prospects of Godrej Properties. The company could be a good long-term bet, because of its trustworthy management and the group’s credential to deliver quality products, they feel.
“The company is into affordable housing, for which there is a lot of demand. The segment still has enough potential for accommodating more and more large players,” said Mayank Shah, CEO, Anagram Capital. The business model of Godrej Properties is different from other players, as the company outsources a lot of work which helps it realise quick gains, he added.
Priced at Rs 490 a share, Godrej Properties IPO was subscribed four times on overall basis, although the retail portion was under-subscribed. The company plans to use the proceeds for new projects, debt repayment and for joint development projects.
The near-term outlook for the real estate sector, according to analysts, does not look as promising as in the past, as most of the positives have already been factored into prices, they feel. The sector is sensitive to changes in interest rates. So, any rise in rates won’t augur well for the sector. It would affect demand, putting pressure on prices and profit margins, feel analysts.
Economic Times, January 6, 2010, Page 16
Stock Surges 9% To Close At Rs 535 On BSE; 20% Of Equity Traded On The First Day
Our Bureau MUMBAI
THE new year has begun on a positive note for new listings. After JSW Energy, yet another public issue — Godrej Properties — made its debut on bourses at a premium to the offer price on the back of good investor participation in trading of the shares.
This is unlike the response to some of the high-profile initial public offerings (IPO) last year that attracted huge subscription but failed to deliver positive returns on listing and subsequently. Godrej Properties shares saw heavy trading during initial trading hours, which lifted the share price to an intra-day high of 586.7. As the day progressed, the stock lost some ground to touch the day’s low of Rs 500 before ending with a gain of 9% at Rs 535 on BSE on Tuesday. The gains were supported by huge volumes as a total of 1.4 crore shares, or 20% of the company’s equity, changed hands both on BSE and NSE.
Analysts have positive views about the long-term prospects of Godrej Properties. The company could be a good long-term bet, because of its trustworthy management and the group’s credential to deliver quality products, they feel.
“The company is into affordable housing, for which there is a lot of demand. The segment still has enough potential for accommodating more and more large players,” said Mayank Shah, CEO, Anagram Capital. The business model of Godrej Properties is different from other players, as the company outsources a lot of work which helps it realise quick gains, he added.
Priced at Rs 490 a share, Godrej Properties IPO was subscribed four times on overall basis, although the retail portion was under-subscribed. The company plans to use the proceeds for new projects, debt repayment and for joint development projects.
The near-term outlook for the real estate sector, according to analysts, does not look as promising as in the past, as most of the positives have already been factored into prices, they feel. The sector is sensitive to changes in interest rates. So, any rise in rates won’t augur well for the sector. It would affect demand, putting pressure on prices and profit margins, feel analysts.
Posts
No comments:
Post a Comment