Wednesday, January 03, 2007

Realty cos raise Rs 4k cr in 2006


BANGALORE: There couldn’t have been a happier year for Indian realtors. Riding on stellar valuations, the real estate industry has jumped 10 places from last year to emerge at the No 2 slot by contributing as much as 17% to the total funds mobilised through public issues — initial public offerings (IPOs) and follow on public issues (FPOs) — this year.

Indian real estate developers and infrastructure companies have raised Rs 3,994 crore in IPOs and FPOs this year as compared to a mere Rs 216 crore last year.

Two out of five issues of over Rs 1,000 crore each this year emerged from the real estate category. Prithvi Haldea, MD, Prime Database, said, “Led by Parsvnath Developers (issue size — Rs 1,090 crore), Lanco Infratech (Rs 1,067 crore) and Sobha Developers (Rs 569 crore), the share of the realty/infrastructure sector stood at Rs 3,993 crore through 12 companies out of the total Rs 24,141 crore that public issues mobilised in 2006. The year also witnessed the second highest-ever mobilisation in the history of the Indian capital market.”

According to Prime, energy companies dominated with a 35% share of this year’s tally at Rs 8,374 crore through just three issues. The year also witnessed the largest-ever IPO — Cairn India — for Rs 5,260.79 crore which propelled the energy sector to the numero uno position.

The realty juggernaut shows no signs of slowing down in the year ahead. As per PRIME, issues in the realty/ infrastructure sector that have already received or are awaiting Sebi approval include the big-ticket Omaxe which is estimated to raise Rs 1,500 crore, Gammon Infrastructure Projects (Rs 375 crore), Akruti Nirman (Rs 350 crore), C&C Constructions (Rs 150 crore) and Gremach Infrastructure Equipments & Projects (Rs 59 crore). Ahluwalia Contracts is expected to raise about Rs 250 crore through its FPO.

About 20 other IPOs/FPOs are in the pipeline for 2007. They include the much-delayed DLF Universal, which will look to raise Rs 12,000 crore, Simplex Infrastructure, Ansal Properties & Infrastructure, Mantri Developers, Emaar Properties, Puravankara Projects, Goel Ganga Group, IJM India Infrastructure, IVRCL Prime Urban Developers, JMD Promoters, Kumar Builders and Peninsula Land.

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