London AIM Calling Indian Real Estate Players

November 23, 2006	(1 votes, average: 3 out of 5)  Loading ...
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Listing on the London Stock Exchange, K Raheja gets the credit of setting the trend for other players in the Indian real estate to follow. Following the footsteps is the Hiranandani group who plans to tap the Alternative Investment Market (AIM) with USD 750 million selling shares. The amount is believed to be the highest offering by any Indian realty developer on the LSE, says CNBC-TV18.

Hiranandani plans to use the proceedings to develop 5 upcoming projects in Mumbai, Chennai, and Jaipur as well as including an I-T special economic zone. Furthermore, these projects will be carried out according to FDI compliant norms.

As per the spur of the moment, the Indian Developers requires accessing cheap and quick capital to mobilize their expansion plans, say industry experts. Basics providing the platform to the demand are quite strong and in that environment this is a substitute route many developers have fixated their eye upon.

Such listings offer an excellent alternative to the tight liquidity market in India. Also, London’s AIM put less stringent requirements for selling shares than other stock exchanges as in India and U.S. The sales will give international investors the long awaited as well as desired entry to India’s booming reality sector, with the $775 billion economy poised to expand 8 percent for the fourth straight year.

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