IPO Update: Akruti Nirman

Looking Beyond Mumbai for Slums

Akruti Nirman has eneterd the capital markets with a public offer of 67 lac shares of Rs. 10 each at a price band of Rs. 475 -540. Investment Guru is of the view that investors may apply for the issue with expectations of small to moderate listing gains. The company has developed a niche in area of real estate development under slum rehabitation schemes.

Highlights of the Issue

  • The company is into development of Commercial and residential properties with Key focus on real estate development on slum rehabilitation land.
  • As a growth strategy, the company which had, till now focussed on Mumbai, is now eyeing pune and banaglore. Company also intends to diversify into large scale development projects, such as Bio-IT Parks, new townships and serviced apartments and hotels.
  • As of November 30, 2006 Akruti had development rights over 11,763,000 square feet of land area, primarily located in Mumbai. Of this area, 8,026,000 square feet represent slum rehabilitation land owned by the applicable slum rehabilitation authorities and 3,737,000 square feet was acquired or leased from third parties.
  • The weighted avergae EPS for last three years works out to be 8.49. However the Annualised EPS based on last 8 mmonths ending November,2006 comes to 3.3 mainly on account of delay in certain projects and chnage in accounting policy for Revenue recognition.
  • Net Asset Value as of Nov30,2006 comes to Rs. 19.93

Issue Opens : Jan 15, 2007

Issue Closes: Jan 19, 2007

Registrar : Intime Spectrum

Akruti Nirman Website