Company: Parsvnath Developers Limited (PDL)
IPO Dates: Nov-06-2006 t oNov-10-2006.
Issue Price: 100% Book Building. Range Rs250 to Rs300.
Issue Size : 33,238,000 Shares Plus Green Shoe Option of 3,087,800 shares.
Total Issue Size= 36,325,800 shares * Rs250 = Rs908 crores
Or 36,325,800 shares * Rs300 = Rs1089.7 crores
Retail Investors have 30% reservation.
Company Background: The company is currently engaged in a variety of projects, 20 integrated townships, 25 residential projects, 27 commercial complexes, including shopping malls, multiplexes, office space and a complete metro station. Further, the company has obtained in-principle government approvals for the development of nine SEZ projects. It is the first company to receive a rating of DR 2-ICRA-NAREDCO from ICRA, which is given for a “strong project development capacity”. It has also receives ISO 9001:2000, ISO 14001:2004, and OHSAS 18001:19999 certifications from RINA. It has diversified business model spanning 14 states and 41 cities. Parsavanath has reputed client list of Biz Bazaar, Raymonds, Spencers, Pizza Hut, McDonalds etc.
It may face risks like any other real estate stock in India due to the overhetaing. No I don’t think commodity prices like Iron and Cement will affect its bottomline as commodities have turned bearish now. (Courtesy: Shankar Sharma and Mark Mobius)
Parsvnath SEZ Plans: Parsvnath is developing 1,500 Hectares together in 9 SEZs.
Parsvnath Company Financials: YoY Growth in Income and PAT is as follows. Figures in crores.
FY2002. Income=27.295 PAT=3.29
FY2003. Income=69.38 (+154%) PAT=11.46 (+248%)
FY2004. Income=112.945 (+62.8%) PAT=18.4 (+60%)
FY2005. Income=306.846 (+171%) PAT=65.6 (+256%)
FY2006. Income=653.67 (+130%) PAT=106.9 (+63%)
Q1FY2007. Income=249 and PAT=36.5. Lets be conservative and annualise the same earnings, we get PAT for FY2007 at 146.
Parsvnath Post-Equity: Post Equity considering the Green shoe option is exercised, 184.696
Expected EPS = Rs7.90
At the issue price of Rs250 or Rs300, the forward PE Multiple on EPS of Rs7.9 is 31.6 or 37.97.
DalalStreet.Biz expects that investors will have some gains on listing. By Tuesday, after talking to our sources in Mumbai, we will come with a clear recommendation.