Six realty companies Emaar MGF, Sahara Prime City, Godrej Properties, Lodha Developers, Nitesh Estates and Sriram Properties plan to raise $2.5 bn via IPOs & will queue up to hit the capital markets this year, signaling that the worst may be over for Real Estate Sector.
Two reasons for this rush could be due to the better market condition compared to last year, and, most of these companies are in serious need of liquidity to repay the debts or to finance new projects.
Mahindra Holidays and Resorts, debuted on BSE 7% higher than its issue price.
So at-least 10% profit is not ruled out on the debut as per the current market conditions.
Godrej Properties, the real estate arm of the Godrej Group, plans to sell around 10% through its maiden public issue. Before that, the company will place 3.5% equity with select institutions. Godrej Properties recently announced plans to spend Rs 5,000 crore on township projects in Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, West Bengal and Delhi that would offer homes at less than Rs 20 lakh.
Mumbai-based Lodha Developers, which has just signed the largest property deal of the year so far to acquire Finlay Mills’ 10.3-acre property in central Mumbai for Rs 710 crore, plans to raise Rs 3,000 crore through an IPO. Part of the proceeds will be used to fund the Finlay Mills deal, which calls for full payment within three months. Lodha, which has been going through a financially tough time, will use the money to retire debts and fund ongoing projects. It is also planning to enter real estate markets other than Mumbai, said a top official, requesting not to be named.
Emaar MGF, a joint venture between Dubai-based Emaar Properties and MGF Development, is looking to raise Rs 4,000 crore this year. In May, a contractor alleged that the company was yet to pay around Rs 200 Cr to a contractor.
Sahara Prime City, the real estate arm of the Sahara Group, is expected to mop up $1 billion. NRI investor C Sivasankaran recently picked up a 49% stake in Sahara’s Aamby Valley project. The size of the transaction could not be verified.
Bangalore-based Nitesh Estates is planning to tap the capital markets to build its land bank and enter the western Indian market, particularly Mumbai.
Chennai-based Shriram Properties, part of the Chennai-headquartered diversified Shriram Group, has proposed Rs 500-700 crore initial public offering.
Two reasons for this rush could be due to the better market condition compared to last year, and, most of these companies are in serious need of liquidity to repay the debts or to finance new projects.
Mahindra Holidays and Resorts, debuted on BSE 7% higher than its issue price.
So at-least 10% profit is not ruled out on the debut as per the current market conditions.
Godrej Properties, the real estate arm of the Godrej Group, plans to sell around 10% through its maiden public issue. Before that, the company will place 3.5% equity with select institutions. Godrej Properties recently announced plans to spend Rs 5,000 crore on township projects in Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, West Bengal and Delhi that would offer homes at less than Rs 20 lakh.
Mumbai-based Lodha Developers, which has just signed the largest property deal of the year so far to acquire Finlay Mills’ 10.3-acre property in central Mumbai for Rs 710 crore, plans to raise Rs 3,000 crore through an IPO. Part of the proceeds will be used to fund the Finlay Mills deal, which calls for full payment within three months. Lodha, which has been going through a financially tough time, will use the money to retire debts and fund ongoing projects. It is also planning to enter real estate markets other than Mumbai, said a top official, requesting not to be named.
Emaar MGF, a joint venture between Dubai-based Emaar Properties and MGF Development, is looking to raise Rs 4,000 crore this year. In May, a contractor alleged that the company was yet to pay around Rs 200 Cr to a contractor.
Sahara Prime City, the real estate arm of the Sahara Group, is expected to mop up $1 billion. NRI investor C Sivasankaran recently picked up a 49% stake in Sahara’s Aamby Valley project. The size of the transaction could not be verified.
Bangalore-based Nitesh Estates is planning to tap the capital markets to build its land bank and enter the western Indian market, particularly Mumbai.
Chennai-based Shriram Properties, part of the Chennai-headquartered diversified Shriram Group, has proposed Rs 500-700 crore initial public offering.
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