dev

Sobha Developers is one of the major players in the construction and real estate business in Bangalore.

Quote:

The company has constructed 75 projects on a contract basis in eight Indian states covering 8.42 million sq ft. Sobha will develop 23 contractual projects for leading corporates like Infosys, Taj Residency, Hewlett Packard in states of Karnataka, Andhra Pradesh, Orissa, Tamil Nadu, Punjab and Maharashtra. Sobha makes residential apartments, villas, row houses and luxury apartments with amenities like clubhouses, swimming pools and shopping complexes. It has developed 21 residential projects in Bangalore covering 2.98 million sq ft. At present, Sobha is working on 15 residential complexes spread over 4.97 million sq ft and has planned another 13 projects covering 5.2 million sq ft. Bangalore blues Sobha has constructed convention centres, software development blocks, multiplexes, hostels, and education and research centres for Infosys. About 83 per cent of its contractual projects were executed for Infosys across six states and further Sobha will be working on 13 future projects valued at Rs 299 crore. Most of Sobha’s revenues come from Infosys and though the tech major has big expansion plans, excess dependence may raise concerns. However Sobha’s association with Infosys is also the key catalyst that will help this real estate maker to increase its contractual clientele. With most of its projects based in Bangalore, Sobha Developers is exposed to risks of regional slowdown and having realised this, the company is acquiring lands in other regions to reduce risks. Sobha is expanding business in cities like Mysore, Hyderabad, Pune, Mumbai, Chennai, Goa and Jaipur.

Saumya

Shobha Developers has long been in news to be preparing to offload 9,476,800 equity shares of 10/- each face value for a price band of 550-640. Even though the company has priced its IPO dearly; industry experts believe that it should bring decent long term returns.

The latest development is its IPO launch on 23rd November which remains open till 29th November, 2006. Here’s the news to share with you all.

Taking the integrated business model into view, the company is likely to raise its capital as well as profits over the medium to long period. And with its each creation in Bangalore, Shobha developers has certainly been able to stamp its authority in the real estate market within a short span of time.

So, what the competitors of Shobha Developers going to do about such a strategic move?

prashant

Investor’s reaction to Sobha Developers after IPO issue opened

Analyst and Broking firms are very much bullish on Sobha Developers, after looking at the company’s past performance and future plans.

Investment Advisor, SP Tulsian says that Sobha Developers is a good issue and also a reflection of real estate boom and good market condition. The company has a good presence in Bangalore, which is Tier-I city. It has a good land bank in this city. It is a property developer and it develops commercial as well as residential properties. It is going to develop the land for next three-four years.

He also says that as compared to Parsvnath Developers, which has a pan-India presence, it looks a bit expensive; but still it is a good issue. Now a days Tier-I cities are growing very fast. It looks good for short term as well as long term. One can also use listing gains.

Broking firms have also come out with their reports on this issue. They firmly believe that the company looks good with the long term perspective.

Source from Moneycontrol.com