Tag Archives: India Real Estate

Indian Stock Market, Real Estate Stocks, Stock Market News

Indiabulls Real Estate – Share Buy-back Offer Closure

Karvy Investor Services Ltd (“Manager to the Buyback”) on behalf of Indiabulls Real Estate Ltd (“Target Company”) has informed this Post Buy-back Public Announcement to the Shareholders / Beneficial Owners of equity shares of the Target Company in compliance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998 and subsequent amendments thereto.

A. The Buy-back
The Target Company had announced the buyback (“the Buyback”) of fully paid up equity shares (“Shares”) of Rs. 2/- each of the Company, not exceeding 6,00,00,000 equity shares, from the existing owners/ beneficial owners of equity shares from the open market through stock exchanges using electronic trading facilities of BSE Ltd (“BSE”) and the National Stock Exchange of India Ltd (“NSE”) in accordance with Section 77A, 77AAand 77B of the Companies Act. 1956 and SEBI (Buyback of Securities) Regulations, 1998 at a price not exceeding Rs. 75/- per share payable in cash for an aggregate amount not exceeding Rs. 450.00 crores (Rupees Four Hundred and Fifty Crores Only). A Public Announcement to public/shareholders (“PA”) was issued / published on December 24, 2011 and a Corrigendum to the Public Announcement was issued / published on April 24, 2012. The Buyback Offer had opened on April 30, 2012 and closed on December 14, 2012. Continue reading Indiabulls Real Estate – Share Buy-back Offer Closure →

Indian Stock Market, Real Estate Stocks

DLF can see better times ahead- BofA Merrill Lynch

BofA Merrill Lynch feels the worst seems behind for DLF with their 2Q disappointment, and maintains Buy rating on DLF with a target price of Rs 245. Summary of BofA Merrill Lynch view on DLF:
DLF’s 2Q FY2013 earnings of Rs3.7bn were 10% ahead of our estimate driven by better than expected revenue recognition from the FSI sale in Gurgaon. While we were expecting unexciting performance in 2Q, sharply lower pre sales at 1.3mn sq ft and Rs10bn increase in net debt surprised negatively.

We maintain our Buy rating with target price Rs245 based on 15% discount to our NAV, offering 8% upside. We expect DLF to deliver on its deleveraging guidance for FY12 while FY13 should see strong volume recovery for DLF (particularly in Gurgaon).

3Q to mark the turnaround in cash flows. We expect 3Q to change the rising trend in DLF’s debt (has increased consistently since FY08) as asset sales come through. The higher than expected increase in debt was primarily due to higher tax outgo (Rs4bn), lower sales booking impacting operational cash flow and foreign exchange debt. We expect stronger sales booking in 2H which will help achieve operational break even
(Rs25bn against just ~Rs16bn in 1H) while about 30bn cash inflow from non core asset sale should help DLF achieve its guidance on debt reduction to sub Rs200bn.

Volume recovery in 2H led by plotted launches. We expect substantial improvement in booking volume in 2H (similar to FY11 when 60% of the volume was contributed in 2H) with DLF’s continued focus on plotted launches in North India (~4-5mn sq ft). Our estimates already factor in slower volume at 9mn sq ft (DLF targeting 10-12mn, -10% YoY) with sales value of Rs41.5bn (-35% YoY) given lack of launches in the luxury segment.

Gurgaon market is our favorite; DLF should rebound
DLF derives 40% of its NAV from Gurgaon which we expect will outperform all other markets in FY13. We are not only expecting prices to hold up in DLF’s prime Gurgaon land but also expect strong volume rebound in Gurgaon market in FY13.