Mumbai-based property developer Oberoi Constructions, led by billionaire Vikas Oberoi, is planning a Rs 4,000 crore ($1 billion) initial public offer by year end.
Vikas Oberoi, also known as Vikki Oberoi is at the 707th slot in the Forbes annual list of billionaires with a wealth of $1.7 billion.
Oberoi has hired investment banking major Morgan Stanley to value the company. The developer plans to issue fresh shares under the IPO, however, the exact dilution of the stake is not known.
The company plans to use the IPO proceeds for land acquisition and fund upcoming projects including the Oberoi Garden City and four and five-star hotels across the country.
“We have executed many major projects in Mumbai and have a good land parcel in the heart of the city. We will not go for pre-IPO placement of shares,’’ said Vikki Oberoi, managing director of Oberoi Constructions.
The company has a land bank of 130 acres mainly in the western suburbs of Mumbai. It has eight residential, commercial and retail projects under construction with a development potential of 21 million sq ft, he said.
On volatility in the stock market and hammering of realty stocks, Oberoi said, “Stock markets will distinguish between the performers and non-performers. We are confident of a good issue,’’ he said.
The company is building Oberoi Garden City, an 80 acre composite realty project including office complexes, malls, schools and residential townships with expected revenues of Rs 8,000 crore. The company has plans to build such projects in all the major cities including Chennai, Bangalore and Hyderabad among others.
These projects will be spread over 80-100 acres. Based on land prices in different cities, these projects have a land acquisition cost of Rs 400 crore to Rs 500 crore and a construction cost of nearly Rs 2,000 crore.
“We are expecting revenues of Rs 4,000 crore from these projects in three years,’’ said Oberoi. The company has also placed a Rs 2,000 crore order with construction major L&T for executing its realty projects.
Oberoi has tied up with Westin Hotels and Resorts of global hospitality major Starwood Hotels for its five-star hotel at Oberoi Commerz in Mumbai.
The company has acquired land for four more hotels in Mumbai and Pune. It is also scouting for properties wherever the company is building Garden City projects. The company will have five hotels, in the four-star and five-star categories, in the next five years, he said.
“Our first hotel will open by 2009 beginning. We have plans to open one hotel every year for the next five years. Starwood will be a preferred partner for our hospitality venture,’’ Oberoi said.
Apart from the IPO proceeds, the company is planning to use internal accruals for the development of upcoming properties.
Oberoi said the company would also go for infrastructure projects if they contain real estate element.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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