Total Promoter group purchases, since 23 March 2020, stand at INR 6.08 Cr. for 1,40,985 shares; effectively, an avg price per share of 432/-
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Sam Zell’s thoughts on commercial real estate going forward :-
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Management is clearly thinking like owners while making fresh purchases in the stock. In two years’ time when Covid is forgotten, Nesco’s stock price would be at different levels. So far there is no indication that the management is reconsidering construction of the next IT Building. Though everything has come to a standstill.
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Its surprising to know that promoters are still buying it from market.
Please check the attachment.
Regards, Vikas
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Isn’t it only a Rs. 1.2 Cr investment which isn’t much for them?
YES. Not much considering the amount of reserves it has.
Actuall in last 10 days, they have bought stocks worth 3 cr.
Can it be also to show shareholders their trust and belief in the company?
Or to push the stock price up in this rally ?
Lets see.
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Seems like management is on SIP mode!
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In Mumbai the environment is of a very unsure one. The government is opening businesses, unlockdown 1.0 is in action. But, they arent sure what shape Community Transmission will take. Herd immunity is still not present, in fact the people are far from it. Many will have to die before we can bank on that.
Therefore, the management is probably doing SIP, and not going all in, knowing fully well that there will be pent up demand on the other side, and their business will do well. But, how bad it will become before that, is still an unknown.
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Today bought this stock after reading below article as its beaten down heavily and promoter is continous buying in recent times. Only threat which i presume is BMC might take longer then expected in giving back posession of exhibition centre which they have taken for coronavirus patients and another threat could be newly built Jio centre, i feel both the threats are well priced in stock now
But management is having huge land bank is biggest asset and also 600crore of liquid cash in balance sheet is great thing to own in such environment
(Disclaimer: Bought today itself)
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An article by Vijay KR, Partner at Deloitte, Real Estate practices.
7-8 minutes read time
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Seeing a continuous buy from the promoters dated since March 2020 till now : I guess there might be an contract/lease given to the govt for number of years ( also now since exhibition area is utilized as corona center - thought process of people will be affected to go to the area and will have negative impact & real estate prices are zooming down ( must be the management have thought well before it) ). Unless am not sure why the promoters are continuously buying in huge number of quantities : Total holding of promoter in screener : 68.32%
guess with few more buying they will reach threshold.
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Promoters have bought about 230000 shares approx valued at 10cr at cmp 454. It’s 0.3% of the market capitalisation.
Still a long way to go to reach 75%.
Also could you please elaborate what you mean by government contract?
Disc. Invested
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Again this is my simple guess as normal thought process (assumption, well facts are not known yet on promoters aggressive buy) - The contract/lease is a term of agreement given to the agency (govt/private) for number of years to use the land. Since the exhibition area is utilized as corona center - thought process of people will be affected to go to the area and will have negative impact.
With that say the current investment that the promoter is doing - i presume its the capital from contract/lease infused
Here are the news publications : wherein point number 4 mentions that the company gives land for lease
Forum board members/experts can give suggestions on this.
Disc : Tracking
The place given to govt as corona center is not leased. Infact mgmt is not even sure if it will be reimbursed for the same.
i dont think we should bother a lot about getting some bucks for it anyways
due to corona, the exhibition land wouldn’t have been used anyways, now if the govt uses it for free, may be it will help create some goodwill and rapport with the govt which can help the promoters later ? just saying …
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Trick is to estimate how the blended work is going to impact commercial property owners and managers , no one is saying offices are not needed
(WeWork at Nesco)
discl - invested.
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Netflix signs deal with WeWork coworking centre at Nesco for Mumbai space
Online video streaming platform Netflix has signed a flexible workspace deal for an entire floor at WeWork’s Nesco coworking centre in Goregaon, Mumbai.
The transaction for 8,860 square feet, for about 320 seats, was signed on June 30, people aware of the deal said.
It will be used to execute visual effects work – which is seeing increased demand in the country – along with another company, Anibrain.
The deal tenure is two plus one year with a lock-in period of 18 months. The employees operating out of Nesco complex will exclusively be aligned for Netflix work,” the people said, without disclosing its financial terms.
The WeWork Nesco IT Park in Mumbai spans eight floors with total seating capacity of 3,400 spread across 228,000 sq. ft. This is the third large deal for WeWork this year.
Netflix signs deal with WeWork coworking centre at Nesco.
Earlier this year, the flexible spaces operator signed a large deal with Commonwealth Bank of Australia and China’s ByteDance, across Bangalore and Mumbai.
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I am here to understand how big is Reliance BKC convention center a threat to NESCO and if anybody has any inputs how are they going to expand in future(in there real estate business) as I see them limited to their IT park.
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