Realty firms eye stock market with over5 bln dollar IPO plans

November 20, 2006	(Be the first to rate this story!)  Loading ...
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On the heels of huge success of Parsvnath Developers’ public issue that generated demand for over Rs 60,000 crore worth shares, domestic real estate firms are planning to raise nearly Rs 22,500 crore through their public offerings.

The presence of Indian property sector has been negligible on the Dalal Street so far with a handful of listed realty firms accounting for less than 1 per cent of the country’s overall stock market capitalisation.

However, it could be a different scenario altogether with more than a dozen companies finalising their plans to hit the capital market.

Out of these, at least five companies are likely to hit the market with their IPOs on the domestic or international stock exchanges before the end of this fiscal year, which could generate a collective amount of Rs 18,000 crore (over 4 billion dollars).

Besides, two already listed real estate firms — Unitech and Ansal Properties are believed to be mulling over plans to raise further capital from the international markets or through the follow-on public offerings (FPOs).

Investment bankers close to the developments said that the two companies could collectively generate over 1 billion dollars (Rs 4,500 crore) from the domestic or international markets — which would take the combined total proceeds for the sector to Rs 22,500 crore (over 5 billion dollars).

Source from Zeenews.com

News Published Under:   Real Estate Developers |

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