Godrej Properties has set up the issue price of its initial public offering (IPO) at Rs.490 per share. Following the comment of analysts that IPO was expensive, the company received maximum bids at lower end of the price band.The Edelweiss report had said on the IPO, "We believe the stock is fully priced in at the lower end of the price band of Rs.490-530/share. Also, we have assumed company's township project at Ahmedabad and IT SEZ at Hyderabad to be fully developed and sold by financial year (FY)20 and FY16, respectively. However, being large scale development, these projects run execution risk and any delays in these projects could hamper valuation considerably.
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