Indian Real Estate Boom Gives Parsvnath a quick head start

December 2, 2006	(Be the first to rate this story!)  Loading ...
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Investors are trying hard to carve a niche in the booming Indian real estate market. However, this zeal has seen one of the pioneering Indian property developers, Parsvnath soar 75 per cent on its stock market debut.

Continuing to emerge as a dominant force in the realty sector of the country, this Delhi based conglomerate jumped to Rs. 526 from its Rs. 300 offer price in an encouraging sign for a multitude of other Indian real estate initial public offerings (IPO) due to the list in the coming one to two quarters.

Indian realty developers will continue their winning streak surging to a record high if the market continues to be just the way it is right now, said Harendra Kumar, head of research at ICICI Direct.

Skyrocketing property prices in the metros like Mumbai and Delhi have impelled warnings from the central bank regarding parts of the market to be overheating. However, this could not have stopped property companies from rushing to tap the overseas markets to fund their growth and expansion modes.

Gone by weeks have witnessed Indian realty biggies taking strategic move to list investment groups on London Stock Exchange’s junior venue, the Alternative Investment Market (AIM). Started by K Rahejas, the trend continues to encourage more and more developers to follow in footsteps.

Parsvnath made a net profit of Rs132.91 million ($3.75 million) in the year to March 2006 on revenues of Rs824 million. It had earnings per share of Rs7.21 for the year.

The company plans to use the fund in the development process of its 14 special economic zones along with 14 luxurious hotels in India. The net profit of Parsvnath Developers increased to Rs 132.91 million in the year to March 2006 on revenues of Rs 824 million.

News Published Under:   Real Estate India, Real Estate Developers |

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