Friday, January 13, 2017

Sobha Limited : Developed themselves.

Founded in 1976, Sobha Group is one of the largest real estate organisations in India and the Middle East. Today, we have presence in 24 cities and 13 states across India and throughout the Middle East. As one of the largest and only backward integrated real estate developers, the company’s reputation remains focused on delivering the highest levels of quality, with no compromise. This what their website says.

Now the reality check -  Sobha Developers Limited, now known as Sobha Limited came IPO in the year 2006, at a price of Rs 640.  The BRLMs were Kotak Mahindra Capital Company Ltd., Enam Financial Consultants Pvt. Ltd., IL&FS Investsmart Ltd. , ICICI Securities Ltd.

In Spite of 10 years of profitability, the stock is trading at Rs 262.   The benchmark index - Sensex was at 13,800 when this company made debut on the exchanges, which is now at 27000 level.

Sobha may grown many times but its investors are not. Most importantly credibility as investor friendly company has taken a severe beating. They should repair / rebuild that first.

The company, in the last 10 years not made given any bonus shares nor there any split in the stock.

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