Hiranandani raises $750 million selling shares in London’s AIM

November 22, 2006	(Be the first to rate this story!)  Loading ...
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Hiranandani Constructions Pvt, the Mumbai-based real estate developer has decided to raise as much as $750 million selling shares in London next month to finance expansion.

The group plans to raise these selling shares in a property investment firm on the London Stock Exchange’s Alternative Investment Market (AIM). As far as the arrangement of offerings is concerned, HSBC Holdings Plc and Bear Stearns Cos. are the names bearing the responsibility.

Hiranandani is selling shares in an upcoming company, which will invest in potential real-estate projects that can grab the attention of overseas investors.

Unlike other stock exchanges in India or U.S., the London Stock Exchange’s junior venue, AIM does not fall for stringent requirements for selling shares. Companies forwarding their share selling applications to AIM appoint the investment banks or brokerage as a “nominated adviser” who see to audit their financial records thereby eliminating the need for filing financial reports with exchange officials.

This is what has encouraged the renowned realty developers of India including Hiranandani, K Raheja Corp., and West Pioneer properties to turn towards London’s AIM.

Also, it would bring golden prospects for foreign investors who have long kept their eyes on booming Indian realty sector. “The real estate sector is very hot,” said Jayesh Shroff, who helps manage $3.5 billion at Mumbai-based SBI Funds Management Ltd. “Large companies are planning to raise money and a lot of huge development is being planned.”

Both the bankers and company’s sources are keeping their lips closed. As per the data showcased by a Merrill Lynch & Co. report, Indian real estate is expected to surge more than four fold from $12 billion in 2005 to more than $50 billion by 2010.

News Published Under:   Real Estate Developers |

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