New Delhi/Bangalore: The listing of Godrej Properties Ltd at a premium on Tuesday could augur well for the 16 real estate initial public offerings (IPOs) set to hit the market this year, analysts say, but caution that it’s premature to read the initial gain as a trendsetter.

Emaar MGF Land Ltd, Sahara Prime City Ltd, Lodha Developers Ltd, DB Realty India Ltd and 12 other realty firms have filed with the market regulator to raise funds through IPOs this year, seeking to take advantage of a stock rally that has helped the Bombay Stock Exchange’s Sensex index double since March.

Property developers refrained from going public since early 2008 because of a slump in demand for apartments and houses as economic growth slowed. Godrej Properties’ IPO was the first listing by any realty firm in at least two years, and coincided with an growth in property demand and the surge in share prices.

Godrej Properties, a unit of Godrej Industries Ltd, raised around Rs469 crore selling 9.4 million shares in December in an IPO that was subscribed four times. The company had fixed its issue price at the lower end of a Rs490-530 range.

The shares touched a high of Rs586.70 on Tuesday, having opened at Rs514.75, and closed at Rs534.55—a gain of 9% on the day.

Analysts say that while the Godrej brand name could have played a key role in the success of the IPO, the fact the firm listed at a premium would encourage other realty firms to go ahead with their IPO plans. Their success would depend on the valuations they demand.

“In the case of other IPOs, the valuation they come up with will eventually decide the fate of their IPOs,” said Parant Desai, an analyst with Angel Broking Ltd.

Bhaskar Chakraborthy, an analyst with brokerage firm India Infoline Ltd, said Godrej Properties’ IPO was tiny compared with listings planned by other companies. Emaar MGF, for instance, plans to raise as much as Rs3,850 crore.

“Also, Godrej is...a corporate with a great track record of corporate governance which has got into real estate,” he said. “Most anchor investors found that to be a unique selling point. This doesn’t apply for the rest of the pack.”

The Godrej listing signals that there has been a revival of interest among real estate investors, though it is too early to say that all the forthcoming real estate listings would do well, said Anuj Puri, country head, Jones Lang La Salle Meghraj, a property advisory. “This was a sort of trial run and we need to wait and watch how a couple of others fare,” he said.

shabana.h@livemint.com

Reuters contributed to this story.