 |
 |
-
Real Estate India
-
Explore Inside Pages
-
News by Month
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
Indian Realty Cos Become Prey of Falling Stock Market
| April 27, 2007 |  (Be the first to rate this story!) Loading ... |
Hit by rising interest rates, it is no more a ‘bull market’ for Indian real estate stocks. Shocked and suffered by the same, eight real estate firms have put on hold their plans of listing on the Alternative Investment Market (AIM) of the London Stock Exchange.
These companies now find themselves unable to raise the expected funds. “Although we have filed the papers but we don’t find it an ideal time to list”, says a Mumbai based property developer Lok Housing and Companies, who are among the real estate companies who have deferred the AIM listing. Following in footsteps are the prominent players such as Ansal Properties & Infrastructure Ltd and the Embassy Group of Bangalore.
Embassy Group has refused to comment on their future moves whereas Ansals seem to have lost interest in AIM listing at this stage after seeing the slowdown of real estate stocks.
With properties in smaller cities and towns have stopped appreciating and are undergoing a price correction, the real estate boom is completely dependent on the metros. Three leading Indian real estate firms have shed between 8% and 36% in market value since January.
Lesser stringent rules and regulations make the Aim more lucrative than other stock exchanges. Wooed by the same, as many as 12 Indian companies raised over over $2.7 billion from AIM. Of this, $2.2 billion was raised by real estate developers including Unitech Corporate Parks, Hirco Plc., Ishaan Real Estate Plc., Evolvence India Fund and Kubera Cross Border Fund.
Most previously listed real estate stocks are trading below their offer price, a fact which has scared the most investors.
The stock market has brought some major modifications in its laws regarding listing to include a revaluation of land banks based on present value. Also, the companies would be asked for details before listing, says the regulators. The shift is taken to bar the entry of fake operators in the market.
News Published Under: Banking and Finance |
|
Add to Favourite:
:
|
Related News:
