CRISIL assigns below average IPO grade to DB Realty

CRISIL has assigned CRISIL IPO Grade 2/5 to the proposed initial public offer (IPO) of DB Realty (DBRL). This grade indicates that the fundamentals of the IPO are below average relative to the other listed equity securities in India.
The grading reflects DBRL’s lack of operating history in real estate development. However, the presence of its experienced promoters, Vinod Goenka and Shahid Balwa, in the real estate development business for more than a decade provides execution track record comfort. The promoters have jointly developed nearly 15.9 million sq ft of residential, commercial and retail real estate projects in and around Mumbai. The grading has considered the highly fragmented nature and severe competition in the real estate industry. However, DBRL`s concentration in and around Mumbai is a key positive.