Midfield Industries IPO Review – Another overpriced small cap Indian Initial Public Offering
July 17, 2010India's Rural Employment Guarantee scheme leads to greater Bargaining Power for Rural Laborers
July 17, 2010Indian Real Estate Sector yet to Recover from the Lehman Crisis
The Indian Real Estate Sector is one of the most interesting sectors in India with a huge potential as well as companies whose financial statements even fund managers don’t trust.This sector was the worst affected by the Lehman crisis and still has yet to recover despite the recovery in the broader Indian stock markets.Even the biggest real estate companies like DLF ,Unitech and others are trading at a fraction of their highs.The main reason for their predicament lies with the companies themselves.Nobody trusts the statements they publish and its almost impossible for a investor to value them.Most of the sell side research valuing these companies would not even convince the analysts writing those reports.
Real Estate IPOs going through a Long Wait
The recent European Crisis had thrown the IPO plans of Real Estate companies like Emaar and Lodha into the backburner.A number of these real estate companies have been trying to raise money from the capital market because of their heavily indebted balance sheets.However something or the other keeps coming in their way.While some desperate real estate companies like Nitesh Estates and Jaypee Infratech managed to get subscribed,they are trading well below their listing price.This has given pause to investors into the Real Estate IPO market.There are about 10 Real Estate companies which have filed their DRHPs with the stock market regulator SEBI.They range from some big players like BPTP,Lodha to smallish players like Kumar,EWDL.
Realtors sense stability in market, revisit IPO plans – ET
With the equity market holding up, some of the real estate companies are revisiting their share-offering plans, even at a price lower than what they had initially hoped for. Many of these companies already have Sebi’s approval to launch their initial public offerings (IPOs), but deferred their plans in the face of unfavourable market conditions. Companies that have the regulator’s approval with a validity until 2011 include Lodha Developers with an indicative IPO size of Rs 2,500 crore, AMR Constructions (Rs 145 crore), Delhi-based Ambiance (Rs 1,293 crore), Emaar MGF (Rs 3,850 crore), Oberoi Realty (Rs 1,002 crore), Kumar Urban Development (Rs 320 crore), Prestige Estates (Rs 971 crore), Neptune Developers (Rs 378 crore), and BPTP (Rs 1,500 crore). “The secondary market is witnessing some euphoria, and sectors like telecom and real estate are being rerated,” said said a top official at a foreign investment bank involved in one of these deals.
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[…] }); }India’s Real Estate Sector is one of the most unloved sectors in the Stock Market.Even Fund Managers shun this Sector because of the complete lack of trust in […]
[…] }); }Real Estate Companies have been trying to raise money from the primary markets for a long time.The depressed markets and the negative sentiment about the real estate sector had […]
[…] company to come out with a high valuation.So finding 23 Anchor Investors is a surprise.Despite the Real Estate Market being avoided by Fund Mangers due to questionable practice,23 Funds have found it worthwhile to add Prestige Estates to their […]