The document summarizes Nitin Rao's presentation at the TIA 20-20 Ideas Summit on March 6, 2021. Rao discusses his investment in IB Real Estate, noting that the company's assets are merging with Embassy Group, whose founder Jitu Virwani has a strong track record in real estate. The merger would create one of the largest real estate companies in India valued at Rs. 9,500 crore, which Rao sees as cheap relative to peers. However, he acknowledges risks like the merger failing or delays, as well as typical real estate industry challenges. Overall, Rao is bullish on the opportunity due to Embassy's leadership and the cheap valuation.

1. TIA 20-20 Ideas Summit
- Nitin Rao, Alpha Ideas
March 6, 2021

2. About Me
• Full Time Independent Investor
• Founder – Investment Blog called Alpha Ideas
• Market Maker in Unlisted Scrips

3. Disclaimer
• Not a SEBI Registered Advisor
• Presentation is only for Information Purposes
• Consult your financial advisor before taking any
investment decision
• I own the stock in my personal portfolio
• Have been wrong before. Can be wrong again
• Reserve the right to change my mind

4. Investment Philosophy
• View the markets as :
– Source of Wealth Creation
– Source of Income Generation
– Source of Endless Education

5. The Idea

6. Real Estate, seriously?

7. Why Now?
• Easy liquidity
• Low Interest Rates
• Refuge in hard assets
• Global Boom in Real Estate

8. Global Context
• US home prices are surging at fastest
pace on record
• China’s red hot property market is causing
the Govt to introduce cooling measures
• Same for Singapore

9. Indian Context
“Residential real-estate
sales have now surpassed
pre-COVID levels in most of
the large markets.
As per industry estimates,
sector-wise sales across
major cities in October to
December 2020 were 23%
higher than in the
January to March quarter
of 2020”
-Ajay Piramal, 11 Feb,
2021

10. Ek Tha Builder

11. NSE Realty Index
9
Year
Highs

12. BSE Realty Index
Crazy
Moves

13. The 3 Bet Criteria
• Bet on the Best Promoter
• Bet on the Leader
• Bet on Cheap Valuations

14. The Promoter – Jitu Virwani

15. Who’s He?
• Founder of the Embassy Group
• Built India’s first & largest REIT
• Owns India Franchise of WeWorks
• Darling of Institutional Investors

16. The Co – IB Real Estate
• Embassy Group Assets to merge with IB
Real Estate
• IBREL to be valued at Rs.92.5 per share
• CCI, SEBI,BSE & NSE already given
approvals

17. Post-Merger Shareholding Pattern

18. Promoter Classification
IN !!
OUT !!

19. A Giant is Born : 1/4
Source: Investor Presentation Jan 2021

20. A Giant is Born : 2/4
Source: Investor Presentation Jan 2021

21. A Giant is Born : 3/4
Source: Investor Presentation Jan 2021

22. A Giant is Born : 4/4
Source: Investor Presentation Jan 2021

23. Dirt Cheap Valuations
• Combined Entity Market Cap ~ 9500 Cr
• This is only 2.25 x annual rent potential
• Comparable peers trading at Market Caps
of 38,000 Cr – 75,000 Cr

24. Risks
• Merger may not happen or gets delayed
• False dawn of Real Estate Cycle
• Usual real estate risks related to
execution, project management, approvals
etc

25. The Last Word
“My whole idea is to grow one of the
largest real estate cos in the country
which I think is not a very difficult
job seeing the way other people
operate in the country.”
-Jitu Virwani, Oct 21,2020

26. Thank You
• Feedback/Queries: nitin.rao@alphaideas.in
• Blog: alphaideas.in
• Twitter: @alphaideas