Hi All
How are you all doing ? I found a few discrepancies in the status reporting of Sobha. For my apt they reported the Electrical switches have been fixed. I checked it yesterday, a month after their status report (Sobha Sunscape), and found it is incorrect. There was not even a single switch fixed. Same is the case is with doors. they reported all the internal doors have been fixed. Even after a month of their report I found the door of the balcony door is not yet fixed. These are minor gaps but still I have pointed it to them. I would suggest people to check the actual status w.r.t to what they are reporting.
Follow Ups:
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what the hell are these Sobha people thinking. They seem to be taking us for a ride in every little thing. That's so damn pathetic.
Hello Guys, On numerous occasions, I felt Sobha has resorted to very cheap and unethical ways in doing business. I feel they are worse than a low class builder. I really doubt their construction quality also now. I will never recommend any of my friends to buy a Sobha apt based on my personal experience.
Monday, April 27, 2009
Saturday, April 25, 2009
Troubled Sobha Magnolia Resident
Sorry for the late posting... But I got to check this AM only as the CRM sent a mail, I had asked them to send a mail to all concerned and I am hoping they did so.
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occassion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
- Troubled Sobha Magnolia Resident
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Hello,
Fully understand your frustration... Although I am not as eager to occupy the place in May, I am concerned about the lack of communication from Sobha and their inability to forecast anything...
I am going to be in India for a couple of weeks, starting May 01 - partly to get the apartment registered on May 12, but more to understand what else we can do about this....
In addition to the delays, there is over Rs.1 lac of Service Tax that they have collected and over Rs.4 lacs extra they have charged for BWSSB and KEB. In all cases, they are refusing to provide receipts of what they have paid to IT department or the State Bodies... Also they are refusing to pay any compensation for the delay claiming that there were modifications...
I think we ought to formally register the Sobha Magnolia Owners Association (SMOA), and get all owners to formally authorise SMOA to file a case against Sobha for recovering the excess payments made... That may well be over Rs.8 crores (4-5 lacs * 160 apartments) and will pay for the ongoing maintenance of the buildings for many years...
Let me know how the meeting goes...
Regards
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occassion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
- Troubled Sobha Magnolia Resident
==========================
Hello,
Fully understand your frustration... Although I am not as eager to occupy the place in May, I am concerned about the lack of communication from Sobha and their inability to forecast anything...
I am going to be in India for a couple of weeks, starting May 01 - partly to get the apartment registered on May 12, but more to understand what else we can do about this....
In addition to the delays, there is over Rs.1 lac of Service Tax that they have collected and over Rs.4 lacs extra they have charged for BWSSB and KEB. In all cases, they are refusing to provide receipts of what they have paid to IT department or the State Bodies... Also they are refusing to pay any compensation for the delay claiming that there were modifications...
I think we ought to formally register the Sobha Magnolia Owners Association (SMOA), and get all owners to formally authorise SMOA to file a case against Sobha for recovering the excess payments made... That may well be over Rs.8 crores (4-5 lacs * 160 apartments) and will pay for the ongoing maintenance of the buildings for many years...
Let me know how the meeting goes...
Regards
Sobha Developers plans to launch high-end apartment project in Bangalore
Even as the demand slump is forcing leading property developers across the country to prefer affordable housing in place of high value apartments, Bangalore-based Sobha Developers is firming up plans to launch a high-end apartment project in the city. The project, which would carry a price tag of about Rs 6,000 per sq ft, will be the first luxury apartment project from Sobha after crisis hit the Indian real estate sector.
According to sources, the J P Nagar project, to come up on 36 acres of land in J P Nagar in the south of the city, will be announced during the present year.
The company also plans to enter the affordable housing segment by announcing apartments in the Rs 25 lakh to Rs 30 lakh range in Coimbatore, Tamil Nadu.
Sobha’s move is in line with the industry trend to announce new launches in select areas and chosen price bands in the residential real estate segment. Availability of bank loans makes residential projects a safe bet for cash-strapped real estate developers.
Unlike other players who have lined up dozens of such project launches during the year, Sobha has decided to test the waters with just two launches in 2009-10.
“We are not in a hurry to announce future projects as our priority is to sell the ones nearing completion. Of about 2,000 flats / villas that are under various stages of construction across the country, Sobha has been able to sell about 50 per cent until now. The company expects to see the balance being sold off by the time the projects get completed within the next two and a half years,” a senior Sobha official said. He added that their projects in the neighbouring states of Kerala and Tamil Nadu are in greater demand than the ones in Bangalore.
Sobha’s plans for new investments come amidst its struggle to manage its Rs 2,000 crore debts. Company officials said the debt repayment plans are going ahead and the company will have no problems in funding the new projects.
“Of the total debts, about one-fourth has to be repaid this year. We are exploring various options, including issue of preferential shares and sale of land to generate the required amount,” company official said.
The company is also expecting a 25 per cent increase in its revenues from contract works for corporates like Infosys.
According to sources, the J P Nagar project, to come up on 36 acres of land in J P Nagar in the south of the city, will be announced during the present year.
The company also plans to enter the affordable housing segment by announcing apartments in the Rs 25 lakh to Rs 30 lakh range in Coimbatore, Tamil Nadu.
Sobha’s move is in line with the industry trend to announce new launches in select areas and chosen price bands in the residential real estate segment. Availability of bank loans makes residential projects a safe bet for cash-strapped real estate developers.
Unlike other players who have lined up dozens of such project launches during the year, Sobha has decided to test the waters with just two launches in 2009-10.
“We are not in a hurry to announce future projects as our priority is to sell the ones nearing completion. Of about 2,000 flats / villas that are under various stages of construction across the country, Sobha has been able to sell about 50 per cent until now. The company expects to see the balance being sold off by the time the projects get completed within the next two and a half years,” a senior Sobha official said. He added that their projects in the neighbouring states of Kerala and Tamil Nadu are in greater demand than the ones in Bangalore.
Sobha’s plans for new investments come amidst its struggle to manage its Rs 2,000 crore debts. Company officials said the debt repayment plans are going ahead and the company will have no problems in funding the new projects.
“Of the total debts, about one-fourth has to be repaid this year. We are exploring various options, including issue of preferential shares and sale of land to generate the required amount,” company official said.
The company is also expecting a 25 per cent increase in its revenues from contract works for corporates like Infosys.
Sobha Developers - Sobha Sunscape offers 2, 3BHK affordable units
The sluggish real estate market seems to have pushed almost all developers to jump into the affordable housing bandwagon. All of them, big and small have realised that this segment has the potential to prop up their sagging business. And they are wooing customers with the promise of offering quality homes for a lesser price.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom, dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom, dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
Wednesday, April 22, 2009
Sobha Developers - Sobha Magnolia - Incomplete Handover
Sorry for the late posting... But I got to check this AM only as the CRM sent a mail, I had asked them to send a mail to all concerned and I am hoping they did so.
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occasion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
Srinivas
The Magnolia Residents continue to be taken for a ride "fullon" and nothing is being done. We cannot simply be mute spectators to happenings over there. I have gotten tired of being voluble in these sites as there is no use other than us exchanging verbose language it falls into deaf ears.
Every possible excuse, denials and delays in completion and handover of Magnolia Property that is the biggest CON GAME going on right now. I have taken possession in Mar09. Regd the flat. Interior work is on expedited pace. But what use? I cant move in May end as I thought.
They promised Mar end power. Then April 15th then 20th. Still no signs of power and elevators. I use the stairs to climb 12 flrs and wanted to do POOJA in April 3rd week again CANT DO IT!
I am just venting what else can I do? I am powerless frustrated and feel wronged and totally made fool of. We are watching and not doing anything.
Friends please come to the occasion and see if we can do something gather with and present with our feet.
In the final analysis I say all the investors, land owners have no interest in fighting. Only genuine owners who want to live there are fighting the nos for these are paltry single digits. So Sobha for all its transparency, honesty, publicly held status does not care a fig for small owners such as me and others.
Please think over the injustice done. It is high time someone pays for this denials & delays and taking responsibility for these and compensating the owners in due ways. It looks are cards are with the builder and we are just living in a Banana Republic with no rights at all.
Srinivas
Sobha Sunscape offers 2, 3BHK affordable units
The sluggish real estate market seems to have pushed almost all developers to jump into the affordable housing bandwagon. All of them, big and small have realized that this segment has the potential to prop up their sagging business. And they are wooing customers with the promise of offering quality homes for a lesser price.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom,
dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
“In these difficult time, consumers look at the brand name. When established names enter the affordable housing segment, consumers automatically go to them. They believe that these developers won’t compromise on the quality of finished products as well as raw materials and finer details that go into setting up a housing project — tiles, window panes, paint and other outdoor ammenities. It makes sense for top developers to cash in on that,” says Mitali Shairi of property consultants HJ Realtors.
Bangalore-based Sobha Developers has put up Sobha Sunscape, a project with 362 apartments, spread across 9 acres off Kanakapura Road on the outskirts of Bangalore. Till now, the company had been offering projects in the high-end and luxury category including villas, townhouses and cul de sac bungalow projects.
Sobha Sunscape offers two-bedroom and three-bedroom flats for Rs 37.99 lakh and Rs 40.10 lakh, respectively. Considering the prevailing rates, which are over Rs 50 lakh, prices of these units are affordaibe. According to the company, two-bedroom units will have a superbuilt area ranging from 1,276.34 sq ft and 1,317.78 sq ft, while three-bedroom units would have a superbuilt area ranging between 1,374.69 sq ft and 1,562.52 sq ft. The project will have 16 floors ,including the ground floor.
J C Sharma, managing director of Sobha Developers, said the real estate community has to focus on the affordable housing segment if they have to stay in the race. "The correction in the market was inevitable, considering the reasons that led to it, but the Indian real estate sector has the resilience to bounce back," he told FC Estate.
Company officials said that houses in the Sunscape project would be offered with a choice of options for home furniture for the living room, kitchen, bedroom,
dining room and bathroom at an extra cost.
The company is targeting professionals who would take advantage of the connectivity factor of Kanakpura Road. Ammenities that Sobha Sunscape claims to offer include a clubhouse, gym, pantry and cafeteria, crèche, a mini market, an ATM, multi-purpose hall, stores, laundromat, clinic, indoor games hall, reading room, swimming pool, basket ball court and a children’s play area.
Kanakpura Road in southern Bangalore is one of the fastest developing areas in the city, company officials said and added that the USP of the project would be proximity to all major ring roads, including Mysore Road, Bannerghatta Road and Kanakpura ring road.
Sunday, April 19, 2009
Sobha Developers - Panchkula to soon have first five-star boutique hotel
Panchkula, satellite township of Chandigarh will soon have its first five-star boutique hotel, The Bella Vista, which will be part of an upcoming shopping mall in City Centre, Sector 5, Panchkula. The hotel project is almost in its final stage and is expected to start by July 2009. Sobha Developers Limited will develop the project.
Confirming the project, Chetan Sood, Marketing Manager, The Bella Vista Shopping Mall and Hotel, Panchkula, said that the hotel is housed on the top three floors of the mall. It has terrace gardens will offer an unobstructed view of the Himalayan Mountains. “A unique feature of this hotel is the six luxury suites, which will have their own private plunge pools and an additional six studios and suites with private, shared swimming pools,” Sood confirms. He reveals that the hotel will have 50 rooms including 12-15 suites; the rest of rooms will be Executive and Standard rooms.
The speciality restaurant for 50 covers and round the clock coffee shop with a roof top garden will offer international cuisines. The banquet and conference facilities at The Bella Vista will provide a venue for business meets and private functions. Other facilities in the hotel include a spa, swimming pool and Health Club.
Confirming the project, Chetan Sood, Marketing Manager, The Bella Vista Shopping Mall and Hotel, Panchkula, said that the hotel is housed on the top three floors of the mall. It has terrace gardens will offer an unobstructed view of the Himalayan Mountains. “A unique feature of this hotel is the six luxury suites, which will have their own private plunge pools and an additional six studios and suites with private, shared swimming pools,” Sood confirms. He reveals that the hotel will have 50 rooms including 12-15 suites; the rest of rooms will be Executive and Standard rooms.
The speciality restaurant for 50 covers and round the clock coffee shop with a roof top garden will offer international cuisines. The banquet and conference facilities at The Bella Vista will provide a venue for business meets and private functions. Other facilities in the hotel include a spa, swimming pool and Health Club.
Thursday, April 16, 2009
Top Europeon fund may invest Rs 300 cr in Sobha
Redevco, one of Europe’s largest real estate investment and development firms, with a $10 billion portfolio, is understood to be looking at investing around Rs 300 crore in various projects of Bangalore-based Sobha Developers
Redevco, part of the diversified Cafro Holdings, which is into private equity, retail, financial services and renewable energy, in addition to real estate development, set up office in India in late 2008. If the discussions with Sobha fructify, it will be its first investment in India.
Investment banking sources indicated that Redevco has had initial discussions with the management of Sobha Developers, which is mired in debt like many of its peers. The investment, if it materialises, is expected to be tied up by September 2009, they say.
Private equity investments into Indian real estate have been slowing over the past three quarters and this deal is expected to be a major one. While Redevco said it had nothing to comment, Sobha has been maintaining that it is in talks with various funds and nothing has been finalised.
Over the past two quarters, Sobha has been aggressively looking at three options to reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times.
The company, which has Infosys as one of its major clients, is looking to raise around Rs 850 cr by selling around 200 acres of its 3,000 acre land bank, offloading up to 49 per cent stake through special purpose vehicles and to offload up to 25 per cent stake at the enterprise level.
Sobha is understood to have identified around 150 acres of land on which projects can be implemented through special purpose vehicles by divesting stakes.
The company is also engaged with around 12 banks and financial institutions to restructure around Rs 850 cr of debt that will be due for payment during the next 18 months.
Banking sources indicate Sobha has been able to get a nod for a part of that sum and talks are also on with mutual funds to roll over Rs 350 cr of debt.
Redevco, part of the diversified Cafro Holdings, which is into private equity, retail, financial services and renewable energy, in addition to real estate development, set up office in India in late 2008. If the discussions with Sobha fructify, it will be its first investment in India.
Investment banking sources indicated that Redevco has had initial discussions with the management of Sobha Developers, which is mired in debt like many of its peers. The investment, if it materialises, is expected to be tied up by September 2009, they say.
Private equity investments into Indian real estate have been slowing over the past three quarters and this deal is expected to be a major one. While Redevco said it had nothing to comment, Sobha has been maintaining that it is in talks with various funds and nothing has been finalised.
Over the past two quarters, Sobha has been aggressively looking at three options to reduce its debt burden of close to Rs 1,900 crore, a leverage of 1.6 times.
The company, which has Infosys as one of its major clients, is looking to raise around Rs 850 cr by selling around 200 acres of its 3,000 acre land bank, offloading up to 49 per cent stake through special purpose vehicles and to offload up to 25 per cent stake at the enterprise level.
Sobha is understood to have identified around 150 acres of land on which projects can be implemented through special purpose vehicles by divesting stakes.
The company is also engaged with around 12 banks and financial institutions to restructure around Rs 850 cr of debt that will be due for payment during the next 18 months.
Banking sources indicate Sobha has been able to get a nod for a part of that sum and talks are also on with mutual funds to roll over Rs 350 cr of debt.
Sobha Developers defers plans to raise equity
Sobha Developers has deferred plans to raise equity through a rights issue, reports CNBC-TV18, quoting sources. The company had announced plans to raise about Rs 250–300 crore via rights issue in August 2008. However, market analysts say this could be a problem because the promoters cannot really subscribe to their share. CNBC-TV18's correspondent Priyanka Ghosh reports.
Sobha Developers had announced the raising of equity via the rights issue in August 2008. We understand from sources that this has been put on hold for the time being at least because of tough market conditions, as the company says.
Sobha Developers had plans to raise about Rs 250–300 crore via the rights issue. It has 87% promoter holding in the company and market analysts say that this could be a problem because the promoters cannot really subscribe to their share and that is really the reason why this has not worked out. However, Sobha Developers has, in fact plans, to raise about Rs 900 crore going forward. They will do this through land sales and also some kind of equity infusion at the SPV level, which they have confirmed. Their landbank is about 3,000 acres. So, there are no problems there.
There are 23 acres under construction and the rest not even under construction. There are no assets in the books of Sobha Developers that are income generating. So, it looks tough that it would find a buyer in this market. It has a debt of Rs 1,850 crore in its books.
Sobha Developers had announced the raising of equity via the rights issue in August 2008. We understand from sources that this has been put on hold for the time being at least because of tough market conditions, as the company says.
Sobha Developers had plans to raise about Rs 250–300 crore via the rights issue. It has 87% promoter holding in the company and market analysts say that this could be a problem because the promoters cannot really subscribe to their share and that is really the reason why this has not worked out. However, Sobha Developers has, in fact plans, to raise about Rs 900 crore going forward. They will do this through land sales and also some kind of equity infusion at the SPV level, which they have confirmed. Their landbank is about 3,000 acres. So, there are no problems there.
There are 23 acres under construction and the rest not even under construction. There are no assets in the books of Sobha Developers that are income generating. So, it looks tough that it would find a buyer in this market. It has a debt of Rs 1,850 crore in its books.
Sobha Developers - Not Transparent, Cheaters, Never meet their deadlines
Like everyone else, even i am a disgruntled Sobha Customer. Had i known that they would turn out like this, i would have never given them a single cent. Below is the summary of my experience with them.
Booked an apartment in one of Sobha’s Project during November 2006. I was told that the delivery would be sometime during mid 2008. Its now April 2009, but till date there is no final word about handover. They have extended this for about 3 times already now.
Initially due to bank loan and other formalities, my payment was delayed for about 3 days. Just 3 days only, and those crooks charged me an interest @ 24% p.a. Seriously I never expected they would do that. But then it was ok. It was written in their agreement that they would do so, so i was fine with it. After that their CRM use to send me monthly reports by email with photos. But then sometime in Feb 2008, even that stopped. They stopped sending monthly updates and they informed me saying that they would be sending quaterly updates instead. Again, i didnt really have much say in all this, so i just took everything they threw at me.
Till date they have now almost collected 90% of the amount of the house. As per the agreement, they were suppose to pay me Rs.10,000 monthly compensation in case there is any delay beyond Feb 2009. Now this period is also after 6 months of grace. So effectively they were suppose to complete the project by Aug 2008. Now when i ask them about the compensation, their CRM informs me that all of it will be settled during the final handover. Even at my end, i need to do some fair bit of financial planning to cough out the final extra cash that would be needed during the handover. But, Sobha’s CRM just refuses to tell me any average figure. I have some serious suspicions that in the end, they might just add some arbitrary charges and set everything off against it and finally i will have to pay for everything. Already this delay of more than a year has effectively costed me around Rs.10 lacs i don't know whats going to come up next.
Some points i would like to summarize:
1. Sobha is NOT transparent in their dealings with their customers. They arbitrarily include many charges for which there is absolutely no justification or reason. They collect 3 times or even 4 times the actual charges that Sobha incurs for Electricity, Water and etc. The worst is the lawyer fees, if you notice, they charge anywhere between Rs.10000 to Rs.30000 as legal fees. Come on, which lawyer in India charges that much money to draft simple agreements? Even in the US lawyers are not so expensive.
2. Sobha projects are always delayed. So my suggestion to prospective buyers would be to buy only completed flats and never to buy if its incomplete. I repeat, completed means, should be ready to move in. There is a huge difference between completed flats and flats ready to move in.
3. Sobha Agreements are insanely one sided. I have never seen such agreements anywhere. They are not meant to protect the customer, but to kill the customer. Initally the sales guy might give you many sweet talks, but make sure you read the fine lines in the agreement.
4. The main reason why people choose developers like Sobha is because of their so called customer satisfaction, transparency and reliability. Where as now, all of these are simply defeated. So you pay a premium not for these extra services, but to get yourself into an never ending trap.
5. Personally the reason why i chose Sobha and agreed to pay a premium for their apartment, is only for one reason - their commitment to its customers. But now all of that is just broken. If we had to deal with so much issues, then why should we pay premium for their houses?
6. Quality of their houses - Well i havent yet owned any. So i cant comment. But i have read other people’s comments here, so i can safelt assume that its not so great. Its pretty similar to what anyone else would give you.
My Ratings:
Sobha developers - Transparent in dealing : 2 / 10
Sobha developers - Customer Service : 2 / 10 (repeatedly write emails to get one word reply from them)
Sobha developers - In keeping its promises : 0 / 10
A disgruntled sobha customer.
Booked an apartment in one of Sobha’s Project during November 2006. I was told that the delivery would be sometime during mid 2008. Its now April 2009, but till date there is no final word about handover. They have extended this for about 3 times already now.
Initially due to bank loan and other formalities, my payment was delayed for about 3 days. Just 3 days only, and those crooks charged me an interest @ 24% p.a. Seriously I never expected they would do that. But then it was ok. It was written in their agreement that they would do so, so i was fine with it. After that their CRM use to send me monthly reports by email with photos. But then sometime in Feb 2008, even that stopped. They stopped sending monthly updates and they informed me saying that they would be sending quaterly updates instead. Again, i didnt really have much say in all this, so i just took everything they threw at me.
Till date they have now almost collected 90% of the amount of the house. As per the agreement, they were suppose to pay me Rs.10,000 monthly compensation in case there is any delay beyond Feb 2009. Now this period is also after 6 months of grace. So effectively they were suppose to complete the project by Aug 2008. Now when i ask them about the compensation, their CRM informs me that all of it will be settled during the final handover. Even at my end, i need to do some fair bit of financial planning to cough out the final extra cash that would be needed during the handover. But, Sobha’s CRM just refuses to tell me any average figure. I have some serious suspicions that in the end, they might just add some arbitrary charges and set everything off against it and finally i will have to pay for everything. Already this delay of more than a year has effectively costed me around Rs.10 lacs i don't know whats going to come up next.
Some points i would like to summarize:
1. Sobha is NOT transparent in their dealings with their customers. They arbitrarily include many charges for which there is absolutely no justification or reason. They collect 3 times or even 4 times the actual charges that Sobha incurs for Electricity, Water and etc. The worst is the lawyer fees, if you notice, they charge anywhere between Rs.10000 to Rs.30000 as legal fees. Come on, which lawyer in India charges that much money to draft simple agreements? Even in the US lawyers are not so expensive.
2. Sobha projects are always delayed. So my suggestion to prospective buyers would be to buy only completed flats and never to buy if its incomplete. I repeat, completed means, should be ready to move in. There is a huge difference between completed flats and flats ready to move in.
3. Sobha Agreements are insanely one sided. I have never seen such agreements anywhere. They are not meant to protect the customer, but to kill the customer. Initally the sales guy might give you many sweet talks, but make sure you read the fine lines in the agreement.
4. The main reason why people choose developers like Sobha is because of their so called customer satisfaction, transparency and reliability. Where as now, all of these are simply defeated. So you pay a premium not for these extra services, but to get yourself into an never ending trap.
5. Personally the reason why i chose Sobha and agreed to pay a premium for their apartment, is only for one reason - their commitment to its customers. But now all of that is just broken. If we had to deal with so much issues, then why should we pay premium for their houses?
6. Quality of their houses - Well i havent yet owned any. So i cant comment. But i have read other people’s comments here, so i can safelt assume that its not so great. Its pretty similar to what anyone else would give you.
My Ratings:
Sobha developers - Transparent in dealing : 2 / 10
Sobha developers - Customer Service : 2 / 10 (repeatedly write emails to get one word reply from them)
Sobha developers - In keeping its promises : 0 / 10
A disgruntled sobha customer.
Thursday, April 9, 2009
Leading real estate cos headed for a debt trap?
Experts say several companies may get stuck in a debt trap as the quantum of debt is too high when compared with the expected cash flow generation in the next fiscal.
Real estate developers say the worst for the sector is over. But the debt in several of the leading companies’ balance sheet suggest a different story. Experts say several companies may get stuck in a debt trap as the quantum of debt is too high when compared with the expected cash flow generation in the next fiscal.
People familiar with the developments say DLF’s debt is around Rs. 15,000 crore. On an average, the company delivers 10-11 million sq. ft per year. If we take the average cost of interest at 13%, DLF’s interest burden for FY10 will be Rs. 1,950 crore. That means the company will have to pay Rs. 163 crore every month and that’s just the interest component. Even if DLF is able to sell 10 million sq. feet at an average price of Rs. 3,000 a sq. foot, it will generate sales of Rs. 3,000 crore. However, typically just 20% of booking amount is paid upfront by customers. Going by that logic, DLF can expect an inflow of Rs. 600 crore. Compare that to the Rs. 1,950 crore of interest burden that DLF will have to pay in FY10.
Unitech’s story, sources say, is no different. With a debt burden of Rs. 8,000 crore, it will have to bear an interest burden of Rs. 1,040 crore. Assuming that one apartment of Unitech sells for Rs. 40 lakh, the company will have to pre-sell 10,400 apartments to generate Rs. 1040 crore.
There are others too in the same boat. HDIL’s debt figure is Rs. 4,000 crore. The company is launching projects aggressively. It had two launches in March and five others are planned later this year. Not surprising, since at 13% interest cost, the firm will have to bear Rs. 520 crore just as interest burden. The question several analysts are asking is will the pre-sale amount suffice for both servicing the interest cost and construction costs as well? Or is a delay in these new projects inevitable?
Sobha Developers have just 1,500 apartments ready for sale. The company has debt of Rs1,850 crore and the interest that it will have to pay is Rs. 241 crore. Sobha Developers has two launches planned later this year. While Sobha’s land bank may be 3,000 acres, just 23 acres is under construction. Company sources have confirmed that it will take additional debt to service interest cost burden in FY10. And industry players fear, several others will follow suit.
Aggressive asset sales will be another characteristic the year ahead in a desperate attempt to generate cash flow. But in the current environment, there are few takers. Unitech’s Saket property still remain unsold after four months. Experts say, like DLF and Puravankara have done in the past, developers may have to surrender back auctioned land to state governments.
We are at the beginning of earnings season, and simply going by the options several companies have to generate cash flow, it looks like FY10 is going to be a tougher challenge than the year gone by.
Real estate developers say the worst for the sector is over. But the debt in several of the leading companies’ balance sheet suggest a different story. Experts say several companies may get stuck in a debt trap as the quantum of debt is too high when compared with the expected cash flow generation in the next fiscal.
People familiar with the developments say DLF’s debt is around Rs. 15,000 crore. On an average, the company delivers 10-11 million sq. ft per year. If we take the average cost of interest at 13%, DLF’s interest burden for FY10 will be Rs. 1,950 crore. That means the company will have to pay Rs. 163 crore every month and that’s just the interest component. Even if DLF is able to sell 10 million sq. feet at an average price of Rs. 3,000 a sq. foot, it will generate sales of Rs. 3,000 crore. However, typically just 20% of booking amount is paid upfront by customers. Going by that logic, DLF can expect an inflow of Rs. 600 crore. Compare that to the Rs. 1,950 crore of interest burden that DLF will have to pay in FY10.
Unitech’s story, sources say, is no different. With a debt burden of Rs. 8,000 crore, it will have to bear an interest burden of Rs. 1,040 crore. Assuming that one apartment of Unitech sells for Rs. 40 lakh, the company will have to pre-sell 10,400 apartments to generate Rs. 1040 crore.
There are others too in the same boat. HDIL’s debt figure is Rs. 4,000 crore. The company is launching projects aggressively. It had two launches in March and five others are planned later this year. Not surprising, since at 13% interest cost, the firm will have to bear Rs. 520 crore just as interest burden. The question several analysts are asking is will the pre-sale amount suffice for both servicing the interest cost and construction costs as well? Or is a delay in these new projects inevitable?
Sobha Developers have just 1,500 apartments ready for sale. The company has debt of Rs1,850 crore and the interest that it will have to pay is Rs. 241 crore. Sobha Developers has two launches planned later this year. While Sobha’s land bank may be 3,000 acres, just 23 acres is under construction. Company sources have confirmed that it will take additional debt to service interest cost burden in FY10. And industry players fear, several others will follow suit.
Aggressive asset sales will be another characteristic the year ahead in a desperate attempt to generate cash flow. But in the current environment, there are few takers. Unitech’s Saket property still remain unsold after four months. Experts say, like DLF and Puravankara have done in the past, developers may have to surrender back auctioned land to state governments.
We are at the beginning of earnings season, and simply going by the options several companies have to generate cash flow, it looks like FY10 is going to be a tougher challenge than the year gone by.
Lack of or No Transparency - Sobha Developers
The association should go to consumer court if Sobha doesn’t respond in right way. In Indranagar, the charges for 14 flats (15 meter connection) is only 3.75 lacs including under table bribes. And BWSSB is about 2.00 lacs, per FLAT it works out to Rs.42,000 (Elec + Bwssb) !!
Moreover Sobha is known to market their flats to techies and soft mannered people only, their ploy is to market flats with ’MBA’ girls who are groomed to rob money.
The registration charges, BWSSB, Electricity and many deposits are nothing but DIRECT robbing.
I have also been cheated by small builder but not to the tune of Lacs of rupees, but few thousands. It’s better to buy smaller flats in small apartments, the charges are ’lot transparent’ compared to the big cheats.
Moreover Sobha is known to market their flats to techies and soft mannered people only, their ploy is to market flats with ’MBA’ girls who are groomed to rob money.
The registration charges, BWSSB, Electricity and many deposits are nothing but DIRECT robbing.
I have also been cheated by small builder but not to the tune of Lacs of rupees, but few thousands. It’s better to buy smaller flats in small apartments, the charges are ’lot transparent’ compared to the big cheats.
Customer is always cheated ~ Courtesy Sobha Developers Ltd
Please beware of Sobha Developers.... Few facts we want to share so that you don’t do same mistake:
One example how Sobha cheats, rather uses its brand to cheat customers. When we booked the Flat, they quoted following charges:
BWSSB - Rs: 63,314/-
KEB Charges: Rs: 55,399/-
But when we went for Registration , they tripled the charges (Given Below). We dont have any choice, as it was delayed 1 year 8 months, we want to register ASAP. More over we trusted the Sobha brand.
BWSSB:Rs: 2,08,935/-
KEB Charges: Rs: 1,07,633/-
Later one gentle man volunteered and collected the information from Bescom and KEB about the Sobha Payments (Given in the following mails from Mr C N Kumar, he requested to remove his mail-Id).
Usually people goto Sobha, because the brand it established. But Sobha used its Brand for profiteering.
Some more facts:
1) Always the sale agreemt is one-sided, this may be true with all big builders. In all cases Customers have to compromise. Because we trust Sobha brand , we blindly sign on the agreement.
2) Please worry about the Carpet area, Sobha is worst in that.
3) Substandard quality (Sewage pipe is broken in one block), water tickling in my bathroom from above flat . They fixed it but chances of repeating are there. Surprised , dont you.
4) Sobha 99.99% of times delivers late. And they evade the late penaly charges 99.99% of times. Take my case, While selecting bathroom tiles i selected tiles which look good. They say its not part of the package, and i should pay extra.I paid it(~ 15,000/-). you should pay extra since the standard tiles they show are so ugly. But the impact of selecting good looking tiles costed us Rs:1,80,000/- later. You know why, Sobha didnt pay us late delivery penalty charges saying you altered the tiles. Any alteration you make, you dont deserve late handover charges. Double whammy.
5)What ever profit loss they make because of later delivery, they recover with triple profits: BWSSB and KEB charges.
6) Always customer is looser, i mean we.
From: C N Kumar
To: Sobha Iris Owners
Sent: Wednesday, March 18, 2009 9:01:46 AM
Subject: [sobhairisowners] BWSSB Charges
Dear Fellow Owners,
Sobha paid as follows to BWSSB for water and sewage connection charges:
For water connection- Rs 2,00,74,100
For GBWSP charges- Rs 53,76,000
Total - Rs 2,54,50,100 say Rs 2.55 crores
I have this information from BWSSB collected under RTI Act. BWSSB also confirms they are yet to provide the connection.
I have been charged Rs 2.21 lacs by Sobha towards BWSSB charges. Assuming each of us have been charged the same Sobha they have collected Rs 7.43
crores. The difference is almost Rs 5 Crores! Worth fighting for?
I am yet to get some information from BDA regarding our OC. Once I have this I will propose a POA to the group.
As of now we have 40 members in this group.
Best regards
C N Kumar
----- Forwarded Message ----
From: C N Kumar
To: sobha_iris@yahoogroups.com
Sent: Friday, March 6, 2009 5:00:18 PM
Subject: [sobha_iris] BESCOM deposit etc.
I have a formal letter from BESCOM regarding the payments made by Sobha for the electricity connections to the flats collected under the Right To Information Act:
Deposit- 28,51,800 ( Rs 7560 per flat for 336 flats. Balance for 2 other connections ( maybe general lighting and club house) plus meter security deposit. These payments were made on 23 May 2007). Supervision charges - Rs 11,94,780
Total= 40,46,580 for 336 flats.
Supervision charges are usually 10 % of the estimated work and material for bringing power from the nearest point. This is about Rs 1.1 crores.
The total cost should be in the region of Rs 1.5 crores. Sobha has collected from each of us Rs 1.14 lacs or Rs 3.83 crores. Should we not get answers for this?
I will similarly get the figures from BWSSB
Best regards
C N Kumar
One example how Sobha cheats, rather uses its brand to cheat customers. When we booked the Flat, they quoted following charges:
BWSSB - Rs: 63,314/-
KEB Charges: Rs: 55,399/-
But when we went for Registration , they tripled the charges (Given Below). We dont have any choice, as it was delayed 1 year 8 months, we want to register ASAP. More over we trusted the Sobha brand.
BWSSB:Rs: 2,08,935/-
KEB Charges: Rs: 1,07,633/-
Later one gentle man volunteered and collected the information from Bescom and KEB about the Sobha Payments (Given in the following mails from Mr C N Kumar, he requested to remove his mail-Id).
Usually people goto Sobha, because the brand it established. But Sobha used its Brand for profiteering.
Some more facts:
1) Always the sale agreemt is one-sided, this may be true with all big builders. In all cases Customers have to compromise. Because we trust Sobha brand , we blindly sign on the agreement.
2) Please worry about the Carpet area, Sobha is worst in that.
3) Substandard quality (Sewage pipe is broken in one block), water tickling in my bathroom from above flat . They fixed it but chances of repeating are there. Surprised , dont you.
4) Sobha 99.99% of times delivers late. And they evade the late penaly charges 99.99% of times. Take my case, While selecting bathroom tiles i selected tiles which look good. They say its not part of the package, and i should pay extra.I paid it(~ 15,000/-). you should pay extra since the standard tiles they show are so ugly. But the impact of selecting good looking tiles costed us Rs:1,80,000/- later. You know why, Sobha didnt pay us late delivery penalty charges saying you altered the tiles. Any alteration you make, you dont deserve late handover charges. Double whammy.
5)What ever profit loss they make because of later delivery, they recover with triple profits: BWSSB and KEB charges.
6) Always customer is looser, i mean we.
From: C N Kumar
To: Sobha Iris Owners
Sent: Wednesday, March 18, 2009 9:01:46 AM
Subject: [sobhairisowners] BWSSB Charges
Dear Fellow Owners,
Sobha paid as follows to BWSSB for water and sewage connection charges:
For water connection- Rs 2,00,74,100
For GBWSP charges- Rs 53,76,000
Total - Rs 2,54,50,100 say Rs 2.55 crores
I have this information from BWSSB collected under RTI Act. BWSSB also confirms they are yet to provide the connection.
I have been charged Rs 2.21 lacs by Sobha towards BWSSB charges. Assuming each of us have been charged the same Sobha they have collected Rs 7.43
crores. The difference is almost Rs 5 Crores! Worth fighting for?
I am yet to get some information from BDA regarding our OC. Once I have this I will propose a POA to the group.
As of now we have 40 members in this group.
Best regards
C N Kumar
----- Forwarded Message ----
From: C N Kumar
To: sobha_iris@yahoogroups.com
Sent: Friday, March 6, 2009 5:00:18 PM
Subject: [sobha_iris] BESCOM deposit etc.
I have a formal letter from BESCOM regarding the payments made by Sobha for the electricity connections to the flats collected under the Right To Information Act:
Deposit- 28,51,800 ( Rs 7560 per flat for 336 flats. Balance for 2 other connections ( maybe general lighting and club house) plus meter security deposit. These payments were made on 23 May 2007). Supervision charges - Rs 11,94,780
Total= 40,46,580 for 336 flats.
Supervision charges are usually 10 % of the estimated work and material for bringing power from the nearest point. This is about Rs 1.1 crores.
The total cost should be in the region of Rs 1.5 crores. Sobha has collected from each of us Rs 1.14 lacs or Rs 3.83 crores. Should we not get answers for this?
I will similarly get the figures from BWSSB
Best regards
C N Kumar
Sobha Developers - Cheating Innocent Customers
Sobha team and brand is not the same what it was 3 years ago. We bought Sobha Daffodill in HSR Layout, Bangalore in September 2006. The delivery date was March 2008 and it has been delayed to November 2009. Sobha has not made any effort to expedite the project, rather they are fooling new buyers by offering crazy schemes like "3bhk at 40% discount, occupation by May 2009". Please do not fall in the Sobha trap, as once you sign the contract and pay money, the builder will take you for a ride.
Sobha is continuously sending us project getting late information. Every time they say the project will be ready in next 3 months, and as a buyer you should start planning the interiors, shifting etc. However, just 15 days to the handover they send you a communication that the project is further delayed by 3-6 months. Reason - downturn in the market & they are having cash problems.
Below is an excerpt from their official communication:
"We regret to inform you that due to the unexpected slowdown, liquidity and financial crunch, the construction work of Sobha Daffodil slowed down over the past 3 to 4 months. We are sure you will understand the situation that we are in; we request you to bear with us for this additional delay and sincerely apologize for it. Commencement for handover of the apartments for interiors will start now wef 30th Nov ’09. Please do understand that the apartment will be handed over for interiors only.
If in their existing projects, if they are having cash problems, how can they start other projects and commit delivery by May 2009. It is nothing but plain cheating and fraudulent activity.
The Sobha brand name is no more. They are here to cheat innocent people.
Sobha is continuously sending us project getting late information. Every time they say the project will be ready in next 3 months, and as a buyer you should start planning the interiors, shifting etc. However, just 15 days to the handover they send you a communication that the project is further delayed by 3-6 months. Reason - downturn in the market & they are having cash problems.
Below is an excerpt from their official communication:
"We regret to inform you that due to the unexpected slowdown, liquidity and financial crunch, the construction work of Sobha Daffodil slowed down over the past 3 to 4 months. We are sure you will understand the situation that we are in; we request you to bear with us for this additional delay and sincerely apologize for it. Commencement for handover of the apartments for interiors will start now wef 30th Nov ’09. Please do understand that the apartment will be handed over for interiors only.
If in their existing projects, if they are having cash problems, how can they start other projects and commit delivery by May 2009. It is nothing but plain cheating and fraudulent activity.
The Sobha brand name is no more. They are here to cheat innocent people.
Sobha Misleading all the way
I would highly recommend that you avoid sobha. I wish i had taken the advice of a friend before i made this booking. Never mind the nearly 3 year delay for the sobha daffodil project or the constant misleading statements that their CRM dept. makes. They are not the "A" grade builders that they advertise. Even in good times they take customers for a ride but now since they are heavily in debt they milk their customers dry.
Consider this that even after paying 80,000 extra for water and electricity post agreement they are now demanding we pay another ~2 lakhs or else no handover. They are also refusing to refund the service tax that government has rescinded stating that they have already made the payments but at the same time are unwilling to provide any receipts. If you are late in making a payment by a single date their ever vigilant finance dept will gleefully impose fines and penalties on you by the thousands but they are delayed by 3 years and you will be lucky to get a paltry sum if at all. Once you sign on the dottled line be prepared for a long list of surprises.
Consider this that even after paying 80,000 extra for water and electricity post agreement they are now demanding we pay another ~2 lakhs or else no handover. They are also refusing to refund the service tax that government has rescinded stating that they have already made the payments but at the same time are unwilling to provide any receipts. If you are late in making a payment by a single date their ever vigilant finance dept will gleefully impose fines and penalties on you by the thousands but they are delayed by 3 years and you will be lucky to get a paltry sum if at all. Once you sign on the dottled line be prepared for a long list of surprises.
Shriram in talks to buy Sobha assets
In what could perhaps be the first sign of consolidation in the slowdown-hit realty sector, Shriram Properties — part of the $5.5-billion Chennai-based Shriram group of companies — is believed to be in talks with Bangalore-based residential market leader Sobha Developers.
It is understood that Shriram may be looking to buy some of Sobha’s asset portfolio — up to seven of them. These assets could be land with development rights or projects under development, a source close to the process said. The deal is likely to be worth Rs 200-300 crore. “Sobha is in discussions with us. But we have not taken any in-principle decision.
Sobha is evaluating to hive off assets/projects and merger options with Shriram,” a top Shriram group official told ET. Talks between both companies are going on for the past four weeks, another source said. ET learnt that Sun Apollo, an equity partner in some of Shriram’s properties, may help Shriram by putting in some of the money, even though this could not be confirmed.
When contacted, Shriram Properties MD M Murali denied any deal with Sobha. He, however, said the company was actively pursuing its expansion plans. Sobha’s JC Sharma, too, denied the development, although he maintained the company was pursuing various options to raise capital.
Sobha MD JC Sharma had earlier told ET that the company was looking at dilution of stake in the company at the entity level by up to 26% and was also open to divest stakes in its SPVs. Sobha, which is facing a liquidity crunch like many other realty players, is looking at a variety of options to raise up to Rs 600 crore in the coming months.
It was also looking to sell some of its land holdings in Chennai, Bangalore and Pune. Sobha holds about 400 acres in these cities.
The deal, if and when happens, will help the Rs 480-crore Shriram Properties — a pure-play fund manager and development company — scale up its size in the residential market. It is not known how Shriram will raise funds for the purchase.
The deal will also generate much-needed cash for Sobha. The Bangalore-based developer has debt of about Rs 1,850 crore on its books. Sobha also needs cash to develop its various projects. It is developing about 1,400 apartments in Bangalore and other parts of the south. Promoters hold 87% stake in Sobha Developers. Some of these land parcels in Bangalore are in Minerva Mill, Bangalore East and Thanisandra. Sobha’s total land bank assets are in the region of 3,000 acres.
The realty sector is groaning under the collective weight of heavy debt and slump in consumer demand. Many firms bought land when prices were very high hoping to sell the apartments at those rates and make decent returns. But the fall in prices has quashed those plans, putting many of them in quandary. They have to complete the building for which there are few takers. Banks are still unwilling to lend while public markets have turned unfriendly to builders. One solution is to consolidate, get rid of non-core properties and projects while focusing on the important ones which can generate returns. Shriram has completed projects covering 4.5 million sq ft in Bangalore, Chennai, Coimbatore and Kolkata, while 80 million sq ft of projects are in the pipeline at Vizag, Kolkata, Chennai, Coimbatore and Bangalore. Walton Street Capital made its first investment in India through Shriram Properties, while Starwood is the other investor at the entity level of the Chennai group.
Shriram also has a 50:50 joint venture with Sun Apollo, which has brought in Rs 600 crore for executing two special purpose vehicle projects in Chennai and Vizag.
The Sobha scrip closed 6.03% up at Rs 94.05 on BSE on Wednesday.
It is understood that Shriram may be looking to buy some of Sobha’s asset portfolio — up to seven of them. These assets could be land with development rights or projects under development, a source close to the process said. The deal is likely to be worth Rs 200-300 crore. “Sobha is in discussions with us. But we have not taken any in-principle decision.
Sobha is evaluating to hive off assets/projects and merger options with Shriram,” a top Shriram group official told ET. Talks between both companies are going on for the past four weeks, another source said. ET learnt that Sun Apollo, an equity partner in some of Shriram’s properties, may help Shriram by putting in some of the money, even though this could not be confirmed.
When contacted, Shriram Properties MD M Murali denied any deal with Sobha. He, however, said the company was actively pursuing its expansion plans. Sobha’s JC Sharma, too, denied the development, although he maintained the company was pursuing various options to raise capital.
Sobha MD JC Sharma had earlier told ET that the company was looking at dilution of stake in the company at the entity level by up to 26% and was also open to divest stakes in its SPVs. Sobha, which is facing a liquidity crunch like many other realty players, is looking at a variety of options to raise up to Rs 600 crore in the coming months.
It was also looking to sell some of its land holdings in Chennai, Bangalore and Pune. Sobha holds about 400 acres in these cities.
The deal, if and when happens, will help the Rs 480-crore Shriram Properties — a pure-play fund manager and development company — scale up its size in the residential market. It is not known how Shriram will raise funds for the purchase.
The deal will also generate much-needed cash for Sobha. The Bangalore-based developer has debt of about Rs 1,850 crore on its books. Sobha also needs cash to develop its various projects. It is developing about 1,400 apartments in Bangalore and other parts of the south. Promoters hold 87% stake in Sobha Developers. Some of these land parcels in Bangalore are in Minerva Mill, Bangalore East and Thanisandra. Sobha’s total land bank assets are in the region of 3,000 acres.
The realty sector is groaning under the collective weight of heavy debt and slump in consumer demand. Many firms bought land when prices were very high hoping to sell the apartments at those rates and make decent returns. But the fall in prices has quashed those plans, putting many of them in quandary. They have to complete the building for which there are few takers. Banks are still unwilling to lend while public markets have turned unfriendly to builders. One solution is to consolidate, get rid of non-core properties and projects while focusing on the important ones which can generate returns. Shriram has completed projects covering 4.5 million sq ft in Bangalore, Chennai, Coimbatore and Kolkata, while 80 million sq ft of projects are in the pipeline at Vizag, Kolkata, Chennai, Coimbatore and Bangalore. Walton Street Capital made its first investment in India through Shriram Properties, while Starwood is the other investor at the entity level of the Chennai group.
Shriram also has a 50:50 joint venture with Sun Apollo, which has brought in Rs 600 crore for executing two special purpose vehicle projects in Chennai and Vizag.
The Sobha scrip closed 6.03% up at Rs 94.05 on BSE on Wednesday.
Friday, April 3, 2009
Realtor Brigade cuts rate by 15% across projects
Plans to build cheaper flats for buyers with Rs. 25-30 lakh budgets, construct hospitals, residences and malls
Close on the heels of DLF Ltd slashing ticket prices of its homes by 30%, Brigade Enterprises Ltd cut rates by 10-15% in all its projects and will build small, cheaper apartments to cater to buyers with budgets of Rs25-30 lakh.
The Bangalore-based developer has lined up 12 projects, which include hospitals, residences and malls, and would start building them before the end of this year. It plans to raise Rs1,000 crore for its ventures.
“We are planning to raise the money this year through a combination route of private equity and institutional funding,” said chairman and managing director M.R. Jaishankar.
Brigade, which has around 14 million sq. ft under development in southern India, is aggressively looking at expanding its hospitality business in 2009.
On Friday, the company, in partnership with Accor hotels and resorts, launched Mercure Homestead, which is a 126-room luxury service apartment complex in north-west Bangalore. This also marked the launch of Accor’s global Mercure brand in India, with the next property lined up at the hill station of Lavasa, near Pune in Maharashtra.
“We are positive on the Indian market and are planning 50 properties here by 2012 under our various brands, such as Mercure, Novotel and others,” said Daniel Tannenbaum, Accor’s India regional director of sales and marketing. He was responding to a query on a dull hospitality sector and dipping demand in the serviced-apartments segment.
Brigade has a debt of Rs. 350 crore, but will not restructure its loans like other developers that include Unitech Ltd, Sobha Developers Ltd and Housing Development and Infrastructure Ltd.
“We didn’t commit the mistake of buying land indiscriminately and only bought enough that would be developed within five-seven years. So, if there is a good piece of land, we are still looking to buy,” said Jaishankar. The company has a land bank of about 450 acres.
Brigade’s net profit for the nine months to 31 December dipped by 17.3% to Rs67.44 crore from Rs81.55 crore in the same period a year earlier.
The company’s stock closed at Rs. 38.75, up 5.59%, on the Bombay Stock Exchange on Thursday, on a day when the Sensex rose 4.51%.
Close on the heels of DLF Ltd slashing ticket prices of its homes by 30%, Brigade Enterprises Ltd cut rates by 10-15% in all its projects and will build small, cheaper apartments to cater to buyers with budgets of Rs25-30 lakh.
The Bangalore-based developer has lined up 12 projects, which include hospitals, residences and malls, and would start building them before the end of this year. It plans to raise Rs1,000 crore for its ventures.
“We are planning to raise the money this year through a combination route of private equity and institutional funding,” said chairman and managing director M.R. Jaishankar.
Brigade, which has around 14 million sq. ft under development in southern India, is aggressively looking at expanding its hospitality business in 2009.
On Friday, the company, in partnership with Accor hotels and resorts, launched Mercure Homestead, which is a 126-room luxury service apartment complex in north-west Bangalore. This also marked the launch of Accor’s global Mercure brand in India, with the next property lined up at the hill station of Lavasa, near Pune in Maharashtra.
“We are positive on the Indian market and are planning 50 properties here by 2012 under our various brands, such as Mercure, Novotel and others,” said Daniel Tannenbaum, Accor’s India regional director of sales and marketing. He was responding to a query on a dull hospitality sector and dipping demand in the serviced-apartments segment.
Brigade has a debt of Rs. 350 crore, but will not restructure its loans like other developers that include Unitech Ltd, Sobha Developers Ltd and Housing Development and Infrastructure Ltd.
“We didn’t commit the mistake of buying land indiscriminately and only bought enough that would be developed within five-seven years. So, if there is a good piece of land, we are still looking to buy,” said Jaishankar. The company has a land bank of about 450 acres.
Brigade’s net profit for the nine months to 31 December dipped by 17.3% to Rs67.44 crore from Rs81.55 crore in the same period a year earlier.
The company’s stock closed at Rs. 38.75, up 5.59%, on the Bombay Stock Exchange on Thursday, on a day when the Sensex rose 4.51%.
Real Estate Developers On the Debt Bed - Sobha Developers Situation?
Real estate firms may be opting for loan rescheduling for some breathing space, but additional interest rate is only adding to the stress.
The real estate sector, which received a shot in the arm in the form of debt rescheduling package, is unlikely to get the full benefit as the package comes with several riders.
While rescheduling helps realty firms realign the payment tenure, it comes with an additional burden of 1-2 per cent interest, more collaterals and pledging of receivables. Bankers, taking into account the risk involved in rescheduling loans for real estate sector, raise interest rate. Confirming the move, a senior official of HDFC said, without wanting to be named. “When extending the time, banks can levy extra interest rate to compensate for the additional risk they take in restructuring accounts.”
However, additional interest rates can put severe strain on real estate companies as they had taken loans at high rates in the past. Levying extra interest would mean additional pressure on the troubled companies. T Y Prabhu, executive director of Union Bank of India says, “The idea of restructuring is to provide respite to the beleaguered companies. Increasing the interest rate only adds to the stress. Staggering of repayment is a better option.”
Until last year, builders and developers went on an overdrive to acquire land and launch projects, borrowing heavily for the purpose. However, the global slowdown has brought about a reversal of fortune for the once-booming realty sector, which is now saddled with liquidity crunch and falling property values, forcing companies to request banks to re-schedule loans.
Bangalore-based Sobha Developers, New Delhi-based Unitech and Mumbai-based HDIL have requested for rescheduling of some of their debt. These companies are not willing to comment on the rates at which they had borrowed money. However, according to a research report compiled by Credit Suisse in January, quoting NSDL data: “Sobha and Unitech borrowed at 19-30 per cent. Also, average borrowing for property companies was 200-300 basis points higher than most other sectors during the same period, indicating the higher risk attached by lenders to the sector.”
The report further added: “Sobha borrowed funds at 24-30 per cent for short periods of 1-2 months in October-November 2008. Further, it also appears that Sobha defaulted on some of the repayments during this time. Unitech borrowed at 19 per cent in November 2008.” The present rate of interest on commercial loans for real estate companies is 14-16 per cent. Banks reassess cash flows and viability of a project while restructuring and give preference to projects that are nearing completion. S Ananthakrishnan, executive director of IDBI Bank said, “As per the restructuring norms, the net present value (NPV) of principal and interest over the term of the loan cannot be diluted.” He also said that “to compensate for any such dilution, interest rate would need to be appropriately increased if the duration of repayment has to be extended to protect the NPV.”
Companies such as Sobha and Unitech are looking at easing their monthly quarterly obligations towards servicing debts.
“Real estate companies want the period of loan to be extended by converting short-term liability into long-term debt. Though it may result in higher rate of interest, a builder would be happy so long as his monthly obligation is reduced,” said Shuva Mandal, managing partner of Fox Mandal and Little, a law firm that specialises in real estate projects.
“If a developer furnishes more collaterals, then the interest rate is kept unchanged. Otherwise, additional interest burden of around 1-2 per cent is levied. We have been involved in 2-3 such instances in the last 45 days,” said Ameet Hariani, managing partner of Mumbai-based Hariani & Co, another law firm.
R Nagaraju, general manager for corporate planning and strategy at Unitech, said, “Interest rates are linked to prime lending rate (PLR).” He refused to comment specifically on additional interest burden because of loan rescheduling. Unitech had earlier revealed that the company had a debt of around Rs 8,000 crore, of which it had to pay Rs 1,100 by March 31 to various banks as opting for loan extension could give some breathing space. Besides Unitech and HDIL, another Mumbai-based real estate company is in the process of rescheduling non-convertible debentures of around Rs 1,275 crore that are due for payment starting April 2009.
S Baaskaran, chief financial officer of Sobha Developers, said, “We do not know about other players, but for us there is no additional burden. It depends upon the project completion and the revised cash flow of the company.”
The real estate sector, which received a shot in the arm in the form of debt rescheduling package, is unlikely to get the full benefit as the package comes with several riders.
While rescheduling helps realty firms realign the payment tenure, it comes with an additional burden of 1-2 per cent interest, more collaterals and pledging of receivables. Bankers, taking into account the risk involved in rescheduling loans for real estate sector, raise interest rate. Confirming the move, a senior official of HDFC said, without wanting to be named. “When extending the time, banks can levy extra interest rate to compensate for the additional risk they take in restructuring accounts.”
However, additional interest rates can put severe strain on real estate companies as they had taken loans at high rates in the past. Levying extra interest would mean additional pressure on the troubled companies. T Y Prabhu, executive director of Union Bank of India says, “The idea of restructuring is to provide respite to the beleaguered companies. Increasing the interest rate only adds to the stress. Staggering of repayment is a better option.”
Until last year, builders and developers went on an overdrive to acquire land and launch projects, borrowing heavily for the purpose. However, the global slowdown has brought about a reversal of fortune for the once-booming realty sector, which is now saddled with liquidity crunch and falling property values, forcing companies to request banks to re-schedule loans.
Bangalore-based Sobha Developers, New Delhi-based Unitech and Mumbai-based HDIL have requested for rescheduling of some of their debt. These companies are not willing to comment on the rates at which they had borrowed money. However, according to a research report compiled by Credit Suisse in January, quoting NSDL data: “Sobha and Unitech borrowed at 19-30 per cent. Also, average borrowing for property companies was 200-300 basis points higher than most other sectors during the same period, indicating the higher risk attached by lenders to the sector.”
The report further added: “Sobha borrowed funds at 24-30 per cent for short periods of 1-2 months in October-November 2008. Further, it also appears that Sobha defaulted on some of the repayments during this time. Unitech borrowed at 19 per cent in November 2008.” The present rate of interest on commercial loans for real estate companies is 14-16 per cent. Banks reassess cash flows and viability of a project while restructuring and give preference to projects that are nearing completion. S Ananthakrishnan, executive director of IDBI Bank said, “As per the restructuring norms, the net present value (NPV) of principal and interest over the term of the loan cannot be diluted.” He also said that “to compensate for any such dilution, interest rate would need to be appropriately increased if the duration of repayment has to be extended to protect the NPV.”
Companies such as Sobha and Unitech are looking at easing their monthly quarterly obligations towards servicing debts.
“Real estate companies want the period of loan to be extended by converting short-term liability into long-term debt. Though it may result in higher rate of interest, a builder would be happy so long as his monthly obligation is reduced,” said Shuva Mandal, managing partner of Fox Mandal and Little, a law firm that specialises in real estate projects.
“If a developer furnishes more collaterals, then the interest rate is kept unchanged. Otherwise, additional interest burden of around 1-2 per cent is levied. We have been involved in 2-3 such instances in the last 45 days,” said Ameet Hariani, managing partner of Mumbai-based Hariani & Co, another law firm.
R Nagaraju, general manager for corporate planning and strategy at Unitech, said, “Interest rates are linked to prime lending rate (PLR).” He refused to comment specifically on additional interest burden because of loan rescheduling. Unitech had earlier revealed that the company had a debt of around Rs 8,000 crore, of which it had to pay Rs 1,100 by March 31 to various banks as opting for loan extension could give some breathing space. Besides Unitech and HDIL, another Mumbai-based real estate company is in the process of rescheduling non-convertible debentures of around Rs 1,275 crore that are due for payment starting April 2009.
S Baaskaran, chief financial officer of Sobha Developers, said, “We do not know about other players, but for us there is no additional burden. It depends upon the project completion and the revised cash flow of the company.”
Job losses spur cancellations in luxury residential projects
The developer fraternity now faces a new crisis: buyers queuing up to cancel transactions after months of paying the booking amount
When Sobha Developers Ltd, a listed realty firm, was recently approached by a buyer who wanted to cancel an apartment purchase in Petunia, a luxury residential project in north Bangalore, out of fear that her husband could lose his job, the developer promptly transferred her booking to one of its more affordable projects.
The buyer, who had already paid Rs. 1.25 crore of the Rs. 1.65 crore for the under-construction Petunia apartment didn’t have to pay anything more.
An economic slowdown and fears of job losses are forcing realty firms to accommodate such requests, said Keshav Menon, executive director, Sobha Developers, without divulging the identity of the buyer. “The idea is not to lose a customer and try to accommodate him within what we can offer,” he said.
At Sobha, which has been grappling with dipping sales and sizable debt, at least one in 10 cancellations every month are due to reasons involving sudden unemployment and the fear of losing jobs, Menon added.
With monthly sales down to single digit at several projects and serious liquidity issues, the developer fraternity now faces a new crisis: buyers queueing up to cancel transactions after months of paying the booking amount. There is no readily available estimate for job losses across the country, but there have been reports of layoffs in sectors such as software services and automobiles.
As such instances increase, developers are beginning to ignore a forfeiture clause that typically allows a refund only after a deduction of 5% to 20% from the booking amount in case of a cancellation.
“The panic to withdraw from bookings is particularly noticeable in high-end projects where the buyer is simply scared of financial insecurity. We try to counsel and retain them but if it is a case of genuine job loss, we ask them to provide some proof and then refund,” said A.R.P. Raman, global head (marketing and sales) for Shriram Group, which has eight projects in Bangalore, Coimbatore, Chennai, Visakhapatnam and Kolkata.
Developers stress it is only in genuine cases that the deduction is held back. At Sobha, for instance, in cases where a refund is demanded without a job loss, “around 25% is deducted from the booking amount and returned”, said Menon.
Six months ago, as the economic slowdown started settling in, Sobha introduced a clause in its sale agreement that the developer will refund the booking amount only after re-selling the same apartment and after a 25% deduction.
Another luxury project, Aquilla Heights in Bangalore has also seen cancellations over the last few months with job loss being cited as a reason. The project, being developed by Tata Housing Development Co. Ltd and billed the tallest residential project in the technology hub, has 244 apartments priced between Rs. 70 lakh and Rs. 1.2 crore. But, “we are also telling buyers to hold on as there are exit options. They are allowed to sell the unit six months after allotment,” said a senior executive at Tata Housing, who asked not be identified citing company policy.
Mint reported on Tuesday that DLF Ltd, the country’s largest developer by market value, has assured around 250 buyers who want to exit a housing project in Chennai that they will be refunded this month after they demanded that the company cut prices by 25%; DLF had previously offered to do so by 10% to 18%. A DLF spokesperson told Mint that a small portion of the buyers, numbering up to 30, wanted refunds claiming job loss.
At least one developer said it was not in a position to make refunds even when the reason was genuine. “We can’t refund right away and if the booking is or an under-construction project, the deductions are 15-20%,” said Mohan Kumar, vice-president (sales and marketing) of Bangalore’s Alliance Infrastructure Pvt. Ltd.
Some can afford refunds but “how many builders can refund immediately with each one suffering a cash crunch?” asked Raminder Grover, chief executive of Homebay Residential Pvt. Ltd, a unit of Jones Lang LaSalle Meghraj, a property advisory firm. Nearly 70% cancellations are in the luxury segment where buyers are feeling jittery about paying a huge monthly installment, said Grover.
When Sobha Developers Ltd, a listed realty firm, was recently approached by a buyer who wanted to cancel an apartment purchase in Petunia, a luxury residential project in north Bangalore, out of fear that her husband could lose his job, the developer promptly transferred her booking to one of its more affordable projects.
The buyer, who had already paid Rs. 1.25 crore of the Rs. 1.65 crore for the under-construction Petunia apartment didn’t have to pay anything more.
An economic slowdown and fears of job losses are forcing realty firms to accommodate such requests, said Keshav Menon, executive director, Sobha Developers, without divulging the identity of the buyer. “The idea is not to lose a customer and try to accommodate him within what we can offer,” he said.
At Sobha, which has been grappling with dipping sales and sizable debt, at least one in 10 cancellations every month are due to reasons involving sudden unemployment and the fear of losing jobs, Menon added.
With monthly sales down to single digit at several projects and serious liquidity issues, the developer fraternity now faces a new crisis: buyers queueing up to cancel transactions after months of paying the booking amount. There is no readily available estimate for job losses across the country, but there have been reports of layoffs in sectors such as software services and automobiles.
As such instances increase, developers are beginning to ignore a forfeiture clause that typically allows a refund only after a deduction of 5% to 20% from the booking amount in case of a cancellation.
“The panic to withdraw from bookings is particularly noticeable in high-end projects where the buyer is simply scared of financial insecurity. We try to counsel and retain them but if it is a case of genuine job loss, we ask them to provide some proof and then refund,” said A.R.P. Raman, global head (marketing and sales) for Shriram Group, which has eight projects in Bangalore, Coimbatore, Chennai, Visakhapatnam and Kolkata.
Developers stress it is only in genuine cases that the deduction is held back. At Sobha, for instance, in cases where a refund is demanded without a job loss, “around 25% is deducted from the booking amount and returned”, said Menon.
Six months ago, as the economic slowdown started settling in, Sobha introduced a clause in its sale agreement that the developer will refund the booking amount only after re-selling the same apartment and after a 25% deduction.
Another luxury project, Aquilla Heights in Bangalore has also seen cancellations over the last few months with job loss being cited as a reason. The project, being developed by Tata Housing Development Co. Ltd and billed the tallest residential project in the technology hub, has 244 apartments priced between Rs. 70 lakh and Rs. 1.2 crore. But, “we are also telling buyers to hold on as there are exit options. They are allowed to sell the unit six months after allotment,” said a senior executive at Tata Housing, who asked not be identified citing company policy.
Mint reported on Tuesday that DLF Ltd, the country’s largest developer by market value, has assured around 250 buyers who want to exit a housing project in Chennai that they will be refunded this month after they demanded that the company cut prices by 25%; DLF had previously offered to do so by 10% to 18%. A DLF spokesperson told Mint that a small portion of the buyers, numbering up to 30, wanted refunds claiming job loss.
At least one developer said it was not in a position to make refunds even when the reason was genuine. “We can’t refund right away and if the booking is or an under-construction project, the deductions are 15-20%,” said Mohan Kumar, vice-president (sales and marketing) of Bangalore’s Alliance Infrastructure Pvt. Ltd.
Some can afford refunds but “how many builders can refund immediately with each one suffering a cash crunch?” asked Raminder Grover, chief executive of Homebay Residential Pvt. Ltd, a unit of Jones Lang LaSalle Meghraj, a property advisory firm. Nearly 70% cancellations are in the luxury segment where buyers are feeling jittery about paying a huge monthly installment, said Grover.
Sobha Developers to declare FY 2009 results by Jun 30, 2009
Sobha Developers Ltd has announced that the Company will publish the Audited Financial Results for the entire financial year 2008-09 within three months from the end of the financial year ended March 31, 2009.
In view of the above, the Un-audited Financial Results of the last quarter ended March 31, 2008 will not be published.
The stock closed the day at Rs.81.55, up by Rs.2.10 or 2.64%. The stock hit an intraday high of Rs.82.05 and low of Rs.79.
The total traded quantity was 27114 compared to 2 week average of 55152.
In view of the above, the Un-audited Financial Results of the last quarter ended March 31, 2008 will not be published.
The stock closed the day at Rs.81.55, up by Rs.2.10 or 2.64%. The stock hit an intraday high of Rs.82.05 and low of Rs.79.
The total traded quantity was 27114 compared to 2 week average of 55152.
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