After careful research, we recommend Value Investors to avoid the IPO of Purvankara Projects at the revised price band of Rs 400 to Rs 450. The real estate prices in Bangalore /Bengalooru are also correcting. [We are personally not buying any argument from Edelweiss Research or Moneycontrol-CNBC TV18 as we are convinced beyond doubt that the management of Purvankara is interested only in stripping investors money]
Purvankara also kept investors in the dark by not going for their land Bank Valuation from reputed Realty Consultants like Cushman & Wakefield. Now the big question is how reliable is Edelweiss or Motilal Oswal analysis of Land Bank when domain experts are kept away.
The problem with small realty firms is their earnings visibility and hence will also not command any premium to their NAV. With correction in the market, their are many other BUYING opportunities and one can AVOID the BIG MISTAKE of investing in Purvankara IPO.
You can now check the status of allotment of Zylog Systems IPO here. [On Phone they told it will be available from the 8th]