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KAMAL PREET SINGH
Roll No. RT170A24 Dept. Of ECE Kamal_jas009@hotmail.com
ABSTRACT Here a study is being made on Indiabulls Financial Services Ltd. There history and their various details like IPO, there share price, retain earning for last for 5 year are shown. Their financial condition is visualized through last 5 year balance-sheet. Here a comparison is been made with some leading financial companies to show there market standing. Also a study about their objective and vision is made here. Their capital structure along with their no. of debt and equity issued by them for last 5 years is being discussed. Their dividend policy pay back ratio and working capital are some other area where some light is been put. Here balance sheet of last two year is been shown: 1.0 INTRODUCTION Housing Development and Infrastructure Limited is a listed real estate development company in India, with significant operations in the Mumbai Metropolitan Region. HDIL's business focuses on Real Estate Development, including construction and development of residential projects and, more recently, commercial and retail projects, Slum Rehabilitation and Development, including clearing slum land and rehousing slum dwellers, and Land Development, including development of infrastructure on land which the company then sells to other property developers. HDIL has an integrated in-house development team which covers all aspects of property development from project identification and inception through construction to completion and sale. Since incorporation in 1996, HDIL has developed 23 projects covering approximately 19.29 million square feet of saleable area, including approximately 12,730,000 square feet (1,183,000 m2) of land sold to other builders after Land Development, primarily in the Mumbai Metropolitan Region. HDIL also have constructed an additional 1,900,000 square feet (177,000 m2) of rehabilitation housing area under slum rehabilitation schemes.HDIL's residential projects generally comprise groups of apartments, towers or larger multi-purpose “township” projects in which individual housing units are sold to customers. The commercial projects are a mix of office space and multiplex cinemas. The retail projects focus on shopping malls. They usually follow a “build and sell” model for the properties they develop. HDIL also undertakes slum rehabilitation projects under a Government scheme administered by the Slum Rehabilitation Authority (SRA), whereby developers are granted development rights in exchange for clearing and redeveloping slum lands, including providing replacement housing for the dislocated slum dwellers. The company has also bagged the prestigious Mumbai Airport Slum Rehabilitation Project to rehabilitate the slum dwellers located
on 276 acres (1.12 km2) of Mumbai Airport land.Although historically HDIL has focused on real estate development in the Mumbai Metropolitan Region, as part of their growth strategy they are considering projects in other locations, including Kochi and Hyderabad. They also are considering expanding into hotel projects, special economic zone(SEZ) developments and “mega-structure” complexes, which are large-scale mixed-use retail, commercial and residential developments. Although historically HDIL has focused on real estate development in the Mumbai Metropolitan Region, as part of their growth strategy they are considering projects in other locations, including Kochi and Hyderabad. They also are considering expanding into hotel projects, special economic zone(SEZ) developments and “mega-structure” complexes, which are large-scale mixed-use retail, commercial and residential developments. HDIL launched an IPO in July 2007 and is currently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). 1.1 HISTORY/ORIGIN HDIL part of the Wadhawan Group, which was founded by the late Mr. Dewan Kuldip Singh Wadhawan in 1973. The Wadhawan Group was founded for the purpose of land aggregation, land management, land development and construction of residential,commercial and retail units, townships and infrastructure. Initially, the Wadhawan Group was also involved in the marketing of residential, commercial and industrial plots. In 1973 the first residential building named Kapil Kunj at Vasai was completed by the Wadhawan Group. In 1978, all the projects of the Wadhawan Group came under the brand name of Dheeraj.As of December 31, 2006, the Wadhawan Group has developed (including our developments)approximately 72.8 million square feet of saleable area and, additionally, has constructed approximately 5.5 million square feet of rehabilitation area under slum rehabilitation schemes.Our Company was incorporated on July 25, 1996 as Housing Development and Improvement India Private Limited, with the objective of developing large-scale real estate projects including residential, commercial and retail projects such as shopping malls,multiplexes and integrated townships and partnering in development of public infrastructure. Since our incorporation in 1996, we have developed and constructed 2 projects covering approximately 11.0 million square feet of saleable area, including approximately 5.7 million square feet of land sold to other builders after Land Development, all in the Mumbai Metropolitan Region.We also have constructed an additional 2.0 million square feet ofrehabilitation area under slum rehabilitation schemes. 1.2 VISION
Since its inception in 1996 HDIL has completed 24 projects covering 11.3mn sq ft of saleable area. The company‟s projects have an enhanced buyer perception, especially since it is a part of the Wadhawan group which has developed a strong reputation for quality construction in the MMR over three decades. The company has created strong brand equity among the middle to higher middle class group in the residential segment, while establishing a firm foothold in commercial and retail segments as well. HDIL‟s expertise includes strong relationships with suppliers from whom it sources material and with contractors that it engages for carrying out
construction services. This enables it to keep a firm check on quality and cost. HDIL can leverage the experienced gained from the projects implemented in other parts of the country and for other types of projects. HDIL has a novel business model wherein it balances its short-term as well as long-term project initiatives. HDIL is a leader in the SRS segment. Executing SRS projects allows HDIL to generate higher returns on its projects, as the cost of land is the cost of construction. HDIL‟s SRS projects are characterized by a lower asset cycle risk as against its non-SRS projects, which involve a one-time upfront payment for the land parcel. HDIL‟s future initiatives involve a venture into the hospitality sector, development of a SEZ and bidding for Airport modernization. HDIL has so far followed the build-and-sell model even for its commercial and retail properties. While this may not be in line with international practices, for companies such as HDIL, which also lock their working capital in developing SRS in Mumbai, there may be higher requirement of capital, and this is better met by building and selling, rather than leasing property. 1.3 BOARD OF DIRECTORS Management Name Rakesh Kumar Wadhawan Kapil Wadhawan Waryam Singh Joseph A Pattathu Lalit Mohan Mehta Surinder Kumar Soni Ramesh Chander Kapoor Name Sarang Wadhawan Dheeraj Wadhawan Ashok Kumar Gupta Satya Pal Talwar Shyam Sunder Dawra Sunil Behari Mathur Raj Kumar Aggarwal Designation Executive Chairman Director Director Director Independent Director Independent Director Independent Director Designation Managing Director Director Director Independent Director Independent Director Independent Director Independent Director
1.4 IPO (INITIAL PUBLIC OFFER) HDIL IPO opens for subscription on 28 June, 2007 and closes for subscription on July 03, 2007. Price Band Between Rs. 430 to Rs. 500 per share About The Company : Since 1978, HDIL has been satisfying the diverse needs of scores of home seekers in Mumbai, the commercial capital of India and Bangalore. It was not just the intention of doing business by
being responsible for marketing affordable homes; the very inclination was to give the best to the home seeker fraternity at large. Issue Details Issue of Equity Shares# 30,000,000 Equity Shares of which Employee Reservation Portion# 600,000 Equity Shares Net Issue# 29,400,000 Equity Shares Of which: Qualified Institutional Buyers (QIBs) Portion At least 17,640,000 Equity Shares* of which Available for Mutual Funds only 882,000 Equity Shares* Balance of QIB Portion (available for QIBs including Mutual Funds) : 16,758,000 Equity Shares* Non-Institutional Portion 2,940,000 Equity Shares* Retail Portion 8,820,000 Equity Shares* Green Shoe Option Portion1 Up to 4,500,000 Equity Shares The Issue and Green Shoe Option Portion Up to 34,500,000 Equity Shares Pre and post-Issue Equity Shares Equity Shares outstanding prior to the Issue : 180,000,000 Equity Shares Equity Shares outstanding after the Issue (excluding the exercise of the Green Shoe Option) : 210,000,000 Equity Shares Equity Shares outstanding after the Issue (including the exercise of the Green Shoe Option in full) : 214,500,000 Equity Shares.
1.5 CAPITAL STRUCTURE / AND COMPARISION WITH OTHER COMPANIES
CAPITAL STRUCTUREOF HDIL From Year 2007 2006 2005 2004 To Year 2008 2007 2006 2004 Class Of Authorized Share Capital Equity Share Equity Share Equity Share Equity 500.00 250.00 250.00 200.00 Issued Capital Paid Up Shares (Nos) Paid Up Face Value 10 10 10 10 Paid Up Capital 214.27 180.00 180.00 150.00
214.27 214272081 180.00 180000000 180.00 180000000 150.00 15000000
CAPITAL STRUCTURE OF INDIA BULLS Capital structure From Year 2007 2006 2005 To Year Class Of Share Authorized Capital 100.00 100.00 100.00 Issued Capital Paid Up Paid Up Shares (Nos) Face Value 2 2 2 Paid Up Capital 48.17 35.94 33.74
2008 Equity Share 2007 EquityShare 2006 Equity Share
48.17 240835066 35.94 179675378 33.74 168675378
CAPITAL STRUCTURE OF OMAXE Pvt Ltd From Year 2007 2006 2005 To Year 2008 2007 2006 Class Of Authorized Share Capital Equity Share Equity Share Equit 210.00 210.00 100.00 Issued Capital Paid Up Shares (Nos) Paid Up Face Value 10 10 10 Paid Up Capital 173.57 154.95 77.48
173.57 173567000 154.95 154953480 77.48 77476740
CAPITAL STRUCTURE OF DLF Ltd. From Year 2007 2006 2005 2004 2002 2001 1999 1997 To Year 2008 2007 2006 2005 2003 2002 2001 1999 Class Of Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Authorized Capital 499.50 499.50 39.50 4.50 4.50 4.50 4.50 4.50 Issued Capital Paid Up Shares (Nos) Paid Up Face Value 2 2 10 10 10 10 10 10 Paid Up Capital 340.97 305.88 37.77 3.51 3.51 3.51 3.51 3.51
340.97 1704832680 305.88 1529421080 37.88 3.62 3.62 3.62 3.62 3.62 37767997 3508007 3508007 3508007 3508007 3508007
CAPITAL STRUCTURE OF HINDUSTAN CONSTRUCTION Paid Up From Class Of Authorized Issued Paid Up Paid Up To Year Shares Year Share Capital Capital Face Value Capital (Nos) 2007 2008 Equity Share 49.50 25.62 256249600 1 25.62 2006 2005 2004 2003 2007 Equity Share 2006 Equity Share 2005 Equity Share 2004 Equity Share 495.00 49.50 49.50 49.50 256.25 256249600 25.62 256249600 22.93 20.02 22929540 20024000 10 1 10 10 256.25 25.62 22.93 20.02
The policy a company uses to decide how much it will pay out to shareholders in dividends. A company's dividend policy is the company's usual practice when deciding how big a dividend payment to make. Dividend policy may be explicitly stated, or investors may infer it from the dividend payments a company has made in the past. If a company states a dividend policy it usually takes the form of a target pay-out ratio.
Dividend Year 2008 2007 2006 2005 2004 Month May Jul May May May Dividend (%) 30 20 20 25 20
Last Price DLF Akruti City HDIL Indiabulls Real Anant Raj Ind Omaxe Puravankara Pro Parsvnath Sobha Developer Brigade Enterp 294.90 632.20 130.05 132.00 85.95 60.65 47.75 46.05 104.15 43.95 Market Cap.
50,275.52 4,216.77 3,582.78 3,399.27 2,536.35 1,052.68 1,019.10 850.53 759.27 493.35
Sales Turnover 5,532.88 436.90 2,379.87 47.77 538.15 1,789.50 565.81 1,726.25 1,186.50 460.71
Net Profit 2,590.28 296.36 1,410.50 467.71 451.66 402.65 210.95 408.46 161.50 102.96
Total Assets 19,655.57 1,403.06 6,749.99 6,020.86 2,950.70 2,976.37 1,753.37 3,508.87 2,751.41 1,225.14
Balance Sheet HDIL Mar '08 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 214.27 214.27 0.00 0.00 3,422.95 0.00 3,637.22 1,946.08 1,166.67 3,112.75 6,749.97
------------------- in Rs. Cr. ------------------DLF Mar '08 340.96 340.96 0.00 0.00 10,928.19 0.00 11,269.15 4,945.91 3,440.49 8,386.40 19,655.55 Akruti City Mar '08 66.70 66.70 0.00 0.00 710.85 0.00 777.55 535.42 90.09 625.51 1,403.06 Indiabulls Real Mar '08 443.40 48.17 288.68 395.23 3,782.83 0.00 4,514.91 2.86 1,503.10 1,505.96 6,020.87
Balance sheet of HDIL:
Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets , loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) Report card PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Last bonus Last dividend (%) Return on average equity 2.21 65.83 477.56 10 57.61 2:7 30 38.79 23/12/08 Mar, 08 Sep, 08 Mar, 08 21/05/08 21/05/08 Mar, 08 214.27 3,422.95 1,946.08 1,166.67 6,749.97 55.31 2.61 52.69 1,178.02 212.56 5,969.85 664.68 5,305.16 1.54 6,749.97 212.56 2142.72 Mar ' 07 180.00 546.83 375.68 1,102.51 24.86 1.27 23.59 80.46 165.04 1,646.89 814.77 832.12 1.31 1,102.51 165.04 87.58 1800.00 Mar ' 06 50.00 135.02 196.46 381.48 5.59 0.64 4.94 51.44 113.28 635.15 423.93 211.22 0.59 381.48 113.28 50.11 500.00 Mar ' 05 10.00 61.08 40.31 51.08 162.46 3.67 0.38 3.28 57.66 275.94 174.41 101.53 162.46 100.00 Mar ' 04 2.00 -3.50 0.71 -0.79 3.35 0.24 3.11 32.65 168.55 205.10 -36.55 -0.79 20.00
1.8 WORKING CAPITAL Working capital =Current Assests – Current Liabities Year 2008 = 5305.85 Year2007 = 832.12 Year2006= 211.22 Year2005 = 101.53 Year2004 = -36.55 (current liabilities are more than current assests)
HDIL slips on profit booking Published on Mon, Dec 22, 2008 at 15:00 , Updated at Mon, Dec 22, 2008 at 15:04 Source : moneycontrol.com Housing Development and Infrastructure, HDIL had touched an intraday high of Rs 179.75 and an intraday low of Rs 156.20. At 2:52 pm, the share was quoting at Rs 157.85, down Rs 9.45, or 5.65%. It was trading with volumes of 11,144,583 shares. On Friday the share closed up 8.43% or Rs 13.00 at Rs 167.30. HDIL advances 12.5% Published on Wed, Dec 10, 2008 at 13:55 , Updated at Wed, Dec 10, 2008 at 13:58 Source : moneycontrol.com Housing Development and Infrastructure, HDIL had touched an intraday high of Rs 102.15 and an intraday low of Rs 90.30. At 1:46 pm, the share was quoting at Rs 100.50, up Rs 11.15, or 12.48%.
It was trading with volumes of 8,347,719 shares. On Monday the share closed up 1.36% or Rs 1.20 at Rs 89.35. HDIL advances 12.5% Published on Wed, Dec 10, 2008 at 13:55 , Updated at Wed, Dec 10, 2008 at 13:58 Source : moneycontrol.com Housing Development and Infrastructure, HDIL had touched an intraday high of Rs 102.15 and an intraday low of Rs 90.30. At 1:46 pm, the share was quoting at Rs 100.50, up Rs 11.15, or 12.48%. It was trading With volumes of 8,347,719 shares On Monday the share closed up 1.36% or Rs 1.20 at Rs 89.35.
HDIL plunges 4.2% Published on Fri, Nov 28, 2008 at 14:00 , Updated at Fri, Nov 28, 2008 at 14:05 Source : moneycontrol.com Housing Development and Infrastructure, HDIL had touched an intraday high of Rs 75.90 and an intraday low of Rs 72.90. At 1:54 pm, the share was quoting at Rs 73.70, down Rs 3.3, or 4.29%. It was trading with volumes of 1,912,814 shares. On Wednesday the share closed up at Rs 77.
Ashok Ley, Axis Bank, HDIL hit new 52-week lows Published on Tue, Nov 25, 2008 at 17:30 , Updated at Tue, Nov 25, 2008 at 17:56 Source : moneycontrol.com A large number of stocks touched new 52-week lows in today’s trade as the markets wiped out all gain in the second half of session and closed sharply lower due to weak European cues as well as negative US markets futures.
HDIL Infra makes open offer for Live India at Rs 36.50 per share
Indiantelevision.com Team (27 NOV 2008 3:00 pm)
MUMBAI: HDIL Infra Projects Pvt. Ltd. has made an open offer to buy up to 20 per cent of the shares of Broadcast Initiatives Ltd. for Rs 36.50 a share. This is the same price that HDIL is paying to acquire 24 per cent stake in Broadcast Initiatives through a preferential allotment. HDIL Will Buy Land To Relocate 80,000 Slum Families
Source: http://indiarealestatelink.com/property-news (15 NOV 2008)
Housing Development and Infrastructure Ltd (HDIL), India’s third largest developer by market value, plans to raise Rs1,000 crore within a year to buy land and relocate 80,000 slum families for the Mumbai airport modernization project. The project will entail the country’s single largest rehabilitation exercise, even bigger than the Dharavi project, which will relocate 55,000 families. HDIL to develop airport land 28 Oct, 2007, 0000 hrs IST, TNN MUMBAI: Real estate firm Housing Development and Infrastructure (HDIL) has won the bid for 276 acres of slum land near Mumbai international airport. The GVK group-promoted Mumbai International Airport (MIAL) had called for bids to redevelop the land as part of the Mumbai international airport redevelopment programme. Other developers like Akruti Nirman and Marathon were also in the race. Confirming the development, HDIL’s managing director Sarang Wadhawan said: “We have signed a deal with MIAL to redevelop the airport slum. HDIL Bonus Issue Approved By admin | May 27th, 2008 | Bonus HDIL Bonus Issue has been approved by the board in their meeting. Housing Development And Infrastructure Limited has informed the Exchange that the Board members, at their meeting held on May 21, 2008 has considered and approved following points subject to approval of the shareholders: 1) Payment of Final Dividend of Rs. 3/- per share. 2) Issue of Bonus Shares in the proportion of 2 (two) new equity shares for every 7 (seven) equity shares held. HDIL Bonus Issue Ratio is 2:7 which means that 2 new bonus shares will be issued for every 7 equity shares held by the share holders of the company on or before the Record Date. HDIL Bonus Issue Record Date is not yet announced by the company, do check back later for more news on HDIL Bonus Issue.
2. REFERENCES :
1. CRIS INFAC “Construction Annual Review” – February 2006 for Sector information 2. HDIL Website - http://www.hdil.in/ 3. HDIL IPO red herring prospectus 4. HDIL annual report FY2007 5. Aswath Damodaran: Investment Valuation for DCF technique and Cost of capital computation 6. Omaxe Website - http://www.omaxe.com/main.php 7. Parsvnath Developers website - http://www.parsvnath.com/ 8. DLF website at http://www.dlf-group.com/
9. Puravankara Website - http://www.puravankara.com/ Capitaline database
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