HDIL Makes Rapid Strides in Realty

July 2, 2007	(Be the first to rate this story!)  Loading ...
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HDIL, a real estate company with operations in the Mumbai Metropolitan Region, is priced handsomely as compared to its competitors and leaves enough for prospective investors.

Real estate stocks have attracted large interests on the bourses than any other sector during 2006. On the other hand, issues like Sobha Developers and Parsvnath Developers received formidable investor interest and cashed on listing.

High interest rates, soaring cement prices and fears of corrections in realty prices took away the luster from the sector. The market came back in its buoyant mode with DLF initial public offer (IPO) at Rs 9,187 crore.

HDIL has plans to raise between Rs 1,277 – 1,485 crore with an issue of 2.97 crore shares in the price band of Rs 430-500.

The issue has a greenhouse option of 4.45 million shares. HDIL will collect a market capitalization larger than Sobha Developers and Parsvnath Developers after the issue.

Around 80% of proceedings from the issue have been earmarked for construction activities. And the remaining will be invested to buy new land. The proposed land acquisitions are underway and more than half of the cost has been paid.

At present, HDIL has a number of real estate projects in its pipeline. It includes commercial, residential, and retail projects. The company enjoys a rapport of being a strong realty player. It is playing a critical role under the slum rehabilitation scheme (SRS) of the government of Maharashtra. Around 2 million sq ft of an additional development has been over under the SRS.

The company has shown great performance over the last three years, with occasional spikes and dips in its numbers. Outlined below is the growth chart of HDIL for the past three years.

News Published Under:   Real Estate India, Banking and Finance |

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