wadia

They are claiming 32 floors. They have got 80 acres so it makes sense for them to have lesser number of tall buildings and more open space.

As per the records they have permission up to 3rd floor and now they have submitted their plan for approval.

It is more difficult for them to sell now as their prices are within striking distance of Hirco.

I have not invested either. Peeya gave me hool so I pretended (else they will kick me off this investor community). This however does sound like an interesting project, so it's fascinating to see how it turns out. I would have invested but am short of money by a small amount (I need 99% more)

You may be right, IB probably are waiting to see if the airport materialises before spending big money. If it does they will raise the price and invest more of their own money. If it does not the project will probably be smaller.

The airport I think is not so crucial (although the chances of the airport being in pnavel site are 95%). Without the airport, this is still an annexe of Navi Mumbai, on the highway and has the exclusivity of a township.

However airport will definitely add big value as Gulf City, Reliance SEZ, other builders, tran harbour, metro and lot of other investments hinge on airport.

Sharpj

Also they are waiting for theie public issue to go through. No point in putting debt funds in a project and increase the project cost with the interest. If they are able to get a hefty premium on their issue, they can begin construction.. They can afford to maintain the current prices for some more time if demand does not pick up.. with debt fund, cost of the project does increase if sale does not pick up..

wadia

I think they have had considerable number of buyers. In theory the project by now is self sustaining, but a company like IB is obviously greedy and will like to move money to other projects and to increase land bank.

What they do not realise is the downside of delaying the project. Had they been going fast, in a city like Mumbai they would have even more number of buyers and would have managed to sell 80% of the project in 1 year.
They are following the old strategy: Delay and gain.

Compare their Indiabulls sky with other projects in south mumbai. You will see the same old strategy.

I am not sure which IPO you are referring to. As I understand, Indiabulls RE is already trading on BSE (http://www.google.com/finance?q=BOM:532832) Their market cap is 1/8th of DLF but their attitude is 8 times that of DLF.

Sharpj

Greed has no bounds.. see they have enough people in the Panvel project, but they want to maximise profits.. why borrow and invest and reduce the margins..

Now that is not the case with IB sky or whatever in lower parel project.. hence pay 10% now.. balance later schemes are on..

They should steam on once they have the issue money.. if the airport mess gets sorted, they will charge a premium on the balance apartments.. to maximise the profit..

wadia

Can you please tell which IPO you are referring to. As I understand, Indiabulls RE is already trading on BSE (http://www.google.com/finance?q=BOM:532832) Are they divesting more stake? Can't they get from Uncle Mittal?

cust_indiabulls_panvel

IB real estate is inded a listed company and is sitting on a lot of funds.

IB real restate also holds more than 50% stake in IB power, wich recently went for IPO.

The problem has been that panvel project did receive a tremendous response - which led to IB real estate changing the plans. I agree that the last few months have been very painful.

However now that the plans have been finalized, the approvals would be there by this year end or early next year.

However , I would again repeat myself - from what i hear about the new plans, it seems this would be a world class project. I would encourage all forum members to try and access this new plan from the IB office.

If the project really comes out as world class, I would not really mind the 4- 6 month delay. As I have always said, it remins to be seen.

Sharpj

See I am not able to find any article for it, but I heard from someone that they plan to come out with an issue and hence these huge ads in the paper for the last 2 weeks.. I will need to check with that guy.. because he also mentioned it is a buy rating from Duetche Bank..

wadia

Maybe you are right and they have not sold enough flats. They did however claim that they have nothing left below 17th floor (maybe the usual marketing strategy).
The 2-2 months have now made the delay to be more than 12 months. I think buyers should insist that any further delay will be intolerable, as otherwise the wait seems to be forever.

12 months to get extra 50 acres, add commercial space and change building height seems to be too much in the fast paced Mumbai. The delay is obviously due to money factor.

Sharpj

Q.. Did IB power get enough subscription or was it planned for IB realty to hold 50% .. After Reliance Power collapse.. there are not many takers for power issues

wadia

It subscribed 22 times in october last year and was sold ar Rs 45. It currently trades at Rs 28.