Sobha Developers IPO
Sobha Developers IPO — date, price band, lot size & details 2006
Sobha Developers listed on 20 Dec 2006 at ₹1,120, 75% above the ₹640 issue price.
Sobha Developers is a real estate developer and contractor that builds homes and also takes on contract projects across eight states. Its total income was Rs 628.44 crore in FY2006.
Stock price
Sobha Developers is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 23 Nov 2006
- Close 29 Nov 2006
- Allotment 11 Dec 2006
- Refund/credit TBA
- Listing 20 Dec 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 23 to 29 Nov, 2006 |
|---|---|
| Price Band | ₹550 – ₹640 |
| Face Value | ₹10 |
| Lot Size | 10 Shares |
| Issue Size | ₹569.4 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 6,400 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 10 shares at the ₹640 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10 | ₹6,400 |
| Retail (max) | 31 | 310 | ₹1,98,400 |
| S-HNI (min) | 32 | 320 | ₹2,04,800 |
| S-HNI (max) | 156 | 1,560 | ₹9,98,400 |
| B-HNI (min) | 157 | 1,570 | ₹10,04,800 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Its land reserves were 2,592.83 acres and land arrangements 3,456.19 acres as of 30 June 2006.
- 02Total income rose from Rs 204.59 crore in FY2004 to Rs 628.44 crore in FY2006.
- 03Profit after tax rose from Rs 8.88 crore in FY2004 to Rs 89.23 crore in FY2006.
- 04It built in-house with 3,222 permanent employees and its own concrete block unit.
Risks · 5
- 01Debt to equity was high at 3.09.
- 02Rs 375.68 crore of the issue was for buying land, which may take time to turn into projects.
- 03Its homes business was concentrated in Bangalore, though it worked on contracts in 8 states.
- 04Real estate demand and prices are cyclical; total assets were Rs 1,196.49 crore on 30 September 2006.
- 05Promoter holding fell from 98.95% before the issue to 86.88% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Sobha Developers offer document.
| Metric | 30 Sep 2006 | 31 Mar 2006 | 31 Mar 2005 | 31 Mar 2004 |
|---|---|---|---|---|
| Assets | 1,196.49 | 1,002.67 | 511.12 | 272.70 |
| Total Income | 532.84 | 628.44 | 465.13 | 204.59 |
| Profit After Tax | 53.97 | 89.23 | 33.85 | 8.88 |
| NET Worth | 190.80 | 136.83 | 64.81 | 29.41 |
| Reserves and Surplus | 118.65 | 106.96 | 34.94 | 8.27 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Sobha Developers RHP.
Where the money goes
₹953.25 Cr of the issue is earmarked to named objects.
About the company
It is a real estate development and construction company focused on residential and contract projects. It built residential projects in Bangalore and contract projects in eight states, including Karnataka, Kerala, Andhra Pradesh, Tamil Nadu and Maharashtra.
As of 30 June 2006 its land reserves were 2,592.83 acres and its land arrangements 3,456.19 acres. It ran its own concrete block unit with a capacity of around 10 million blocks a year, and had 3,222 permanent employees as of 30 September 2006.
The IPO was Rs 569.40 crore and was entirely a fresh issue at Rs 640, the top of the Rs 550 to Rs 640 band. The money was for land, building its projects and repaying loans.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Sobha Developers IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Axis Capital
255 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
ICICI Securities
221 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Bannari Amman Spinning Mills (-25.2%).
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
HSBC InvestDirect Securities (India) Ltd
24 issues handledBest listing: Dishman Pharmaceuticals & Chemicals (+97.1%). Weakest: Bannari Amman Spinning Mills (-25.2%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Sobha Developers?
The current Grey Market Premium is ₹0.
What is the Sobha Developers IPO price band?
₹550 to ₹640, on a face value of ₹10.
When is the allotment?
The basis of allotment is 11 December 2006, with listing on 20 December 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
