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Stock market investors should be more aware of the working of real estate listed entities and importantly understand the cyclical nature of the industry, said Mohit Goel, Chief Executive Officer, Omaxe.
Goel was responding to queries on why the stock price of the company had failed to attract investors despite the company clocking commendable growth over the years.
Listed in 2007 at an issue price of Rs 310, the IPO to raise Rs 550 crore was oversubscribed over 35 times. The IPO received bids for 63.09 crore shares against 1.77 crore shares put on offer. Omaxe today is present in 30 cities with 42 projects in pipeline.
On September 27, 2013, Omaxe offer for sale to comply with SEBI’s minimum public shareholding norm of 25 per cent failed to attract the required subscription for just 1.525 crore shares.
The company received bids for about 42.3 lakh shares or 27.74 per cent of the offer size. The OFS floor price was Rs 135 a share.
On Friday, the shares of Omaxe closed at Rs 138.90 on BSE.
In FY 07, turnover was Rs 819.3 crore and net profit at Rs 120.73 crore. For FY 13, its’ consolidated revenues stood at Rs 2,077.54 crore and net profit at Rs 105.7 crore.
Omaxe is planning another OFS this month to offload about six per cent of its promoter holding to comply with SEBI norms of minimum public shareholding. As of June 7, 2013, the promoter holding in the company stood at 83.79 per cent.
Goel tends to point out that the markets in 2007 were vastly different from today in terms of valuations, though the Sensex is around 20,000 now.
On margins, Goel said it was about 15-20 per cent in both tier 2 and 3 cities as well as in Delhi, the only metro where the company operates.
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