"A few thoughts…" is a column that our CMD
Mr M.R. Jaishankar writes regularly for our house journal Brigade Insight. A few of his columns are reproduced here:

(December 2007)

They say the number 13 is lucky for some. It was for Brigade Group! Our maiden public issue of equity shares was over subscribed 13 times on 13 December, the closing date of our IPO. It's a satisfying oversubscription, especially since the final clearances and permissions were received only on 30 November. In just 13 days (!), the IPO was marketed, issue opened and closed.

It was an interesting, challenging and taxing process—involving interactions with the media, stock brokers and research analysts; road shows at Singapore, Hong Kong, London, New York, Boston, Mumbai, Ahmedabad, Baroda, Bangalore, Chennai, Chikmagalur, Mysore and Shimoga; and numerous one-to-one meetings with major national and international institutional investors and HNIs.

Overall, it was a great team effort involving investment bankers, legal counsels (national and international), registrars to the issue, bankers, ad agencies, friends, well-wishers and our Independent Directors, who helped in tough situations; and of course, the dedicated IPO core team at Brigade, supported by all Brigadiers. It was especially gratifying that the Staff Reservation Quota was oversubscribed, which is unusual. Three cheers to everyone!!!

Being a listed company will increase our responsibilities multifold. What we say and do is under public gaze and open to question. It will be a great challenge to achieve quarter on quarter growth, due to the very nature of the property development industry. It will be my personal endeavour—and that of all Brigadiers—to work diligently to meet the expectations of investors who have reposed confidence in us, and other stakeholders like customers, associates and staff.

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Have real estate prices peaked? While one cannot expect the 40%-50% jumps seen during 2005-06, an average appreciation of around 15% per annum appears quite feasible. The real estate market in the country in general, and Bangalore in particular, is overall healthy, with the forces of demand and supply finding a good equilibrium. As long as the Indian economy continues to maintain the current GDP growth rate of 8+%, the real estate sector will continue to grow. Just look towards China to know what effect sustained double digit growth rates over a 25-year period will have on the economy of a country and the prosperity of its citizens.

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Infrastructural deficiencies and bottlenecks are the biggest concern of international and national investors and corporates. This will impede our country's ability to sustain growth, and good growth rates, year on year. While Indian entrepreneurs are capable of dreaming big and realising their dreams, they face bureaucratic hurdles, lack of vision and more particularly, insufficient planning and co-ordinated efforts by different governmental agencies. But for the quid-pro-conditionalities for the release for JNNURM (Jawaharlal Nehru National Urban Renewal Mission) funds, many civic authorities would not have been able to make the few improvements currently seen in urban infrastructure.

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The coming year will be very important, nationally and internationally, as major political changes are expected in India and USA. One hopes 2008 will usher in good cheer for one and all. Here's wishing all readers Season's Greetings and the very best in the New Year!

April 2009
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