Mumbai: Housing Development & Infrastructure Ltd (HDIL), the Mumbai-based real estate developer, made its debut on the Bombay Stock Exchange (BSE) at Rs567.50, a 13.5% premium to its issue price of Rs500 per share, and a price that analysts described as a happy sign for other real estate stocks that have lined up initial public offerings (IPOs). The stock closed at Rs558.60, at a premium of 11.72%, clocking the highest volume among all stocks on BSE with 15.6 million shares changing hands.
The company’s IPO which closed on 3 July was subscribed 6.6 times.
After listing, HDIL ranks third among realty companies, with a market capitalization of Rs11,730.60 crore. DLF Ltd, which listed on 5 July, ranks first with a market cap of Rs1.11 trillion and Unitech Ltd, second, with a market cap of Rs47,708.44 crore. The IPO of another real estate firm, Omaxe Ltd closed on Tuesday, and was subscribed 68 times.
According to Delhi-based Prime Database, a primary market data provider, 46 real estate companies have lined up public issues.
The list includes Emaar MGF Land Pvt. Ltd (which hopes to raise Rs13,000 crore), Bangalore’s Purvankara Developers Ltd (Rs1,300crore), and Sahara Infrastructure and Housing Ltd, the real estate arm of the Sahara Group.
BSE’s realty index that made its debut on 10 July at 7377.53 closed on Tuesday at 8374.89, losing 0.05% from its previous close of 8379.28.
HDIL is a real-estate development company with significant operations in the Mumbai metropolitan region. It focuses on real-estate development, including construction and development of residential projects and, more recently, commercial and retail projects, slum rehabilitation anddevelopment.
Currently, 50.7% of HDIL’s business comes from the infrastructure development business, 18.4% from residential projects, 5.9% from commercial developments and 4% from retail properties. Slum re-development activities account for the rest.
On a consolidated basis, HDIL reported a net profit of Rs548 crore on sales of Rs1204.19 crore in the year ended March.
“Our valuation is comparatively higher as 82% of the land bank is located in and around Mumbai city where land valuations are much higher,” said HDIL managing director Sarang Wadhwan.