Riding in on 2 booms

Sobha Developers IPO opened last week and got the expected response from investors. The price was between 560 and 640. At the higher end of the band, the stock would trade at 40x its earnings. I feel this is expensive but given the way markets are nobody bothers to question..

Looking at Sobha promoters themselves, they have really cashed in on 2 booms.
1) They rode on the real estate boom and have cashed in on that and made tonnes of money. They priced their properties at exorbitant rates and made the most of it. They knew that the IT guys would pay anything for flat in Bangalore.

2) Now they are all set to cash in on the stock market boom with their overpriced IPO. They know that investors (still hysterical about the Indian economy) would oversubscribe to the issue and make it a big hit.

Ohhh..Did I sound like a dirty socialist for a second?