47237 Investors following HDIL. Share this News with them.

0

Like this story, share it with millions of investors on M3

HDIL an expensive issue, invest at Rs 430: Experts

HDIL has set the public issue price band at Rs 430-500 per share and will offer 3 crore shares through IPO. Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Apply for BEML FPO at lower band: Experts Do not subscribe to Spice Comm IPO: ASK Sec Subscribe to Suryachakra Power IPO with long term view Apply for Spice Comm IPO; room for appreciation Nelcast to list on June 27 Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Real Estate Developer Housing Development and Infrastructure (HDIL) will raise around Rs 15 billion by offering 29.70 million shares at a price band of Rs 430-500 for each Rs 10 face value share.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

The issue also has a greenshoe option of 4.45 million shares. At the lower end of the price band the issue will be worth Rs 12.77 billion. The initial public offer, IPO will open on June 28 and close on July 3, 2007.

As on May 31, the company's developable land reserve was 112.20 million sq ft, of which the company itself owns 78.30 million sq ft. However, 82.8% of land reserves are in Mumbai Metropolitan region alone. The company's revenue for 2006-07 (Apr-Mar) stood at 12.04 bln rupees and profit for the year was Rs 5.48 billion.

The company has nearly 45.5 million sq ft under construction and an additional 66.6 million sq ft in various stages of planning. Much of this developable area has come from the company's slum rehabilitation activities, under which a builder gets to build additional space in return for the free housing given to slum dwellers. The company derives nearly 15% of its business from the slum rehabilitation schemes.

Employees of the company will get reservation of 600,000 shares, making total issue size to the public 29.10 million shares. The issue will have 60% reserved for qualified institutional buyers, out of which 5% will be reserved for mutual funds.

Of the net issue, high networth investors will get 10% reservation and 30% of the issue will be reserved for retail investors.

Kotak Mahindra Capital., Enam Financial Consultants Pvt Ltd, and ICICI Securities are lead managers to the issue.