Hemal Savai, Bloomberg
Mumbai: Shares of Indiabulls Real Estate Ltd, the property unit of Indiabulls Financial Services Ltd, closed at Rs325.65, down by 81.35 points on the Bombay Stock Exchange.
In early trading, the counter was listed at Rs399 on the first day of trading in Mumbai, giving it a market value of about $1.6 billion (Rs6,983 crore).
Indiabulls Real Estate, which develops residential, commercial and industrial properties, was separated from the New Delhi-based Indiabulls Financial as part of a restructuring of the securities company. Farallon Capital Management LLC, a US hedge fund, owns a stake in the company.
Indiabulls Real Estate is developing six projects including two commercial office buildings in Mumbai, India’s financial hub, and a residential property near New Delhi through a joint venture with DLF Universal Ltd, India’s biggest developer.
The growing demand for houses and office spaces in India has encouraged several Indian real estate companies to sell shares to fund expansion.
Commercial and residential construction in India, Asia’s fourth-largest economy, will surge to $50 billion by 2010 from $12 billion in 2005, according to a Merrill Lynch & Co. report. India will need as many as 10 million new housing units a year by 2030, according to estimates by the Asian Development Bank.
Shares of Indiabulls Financial changed hands at Rs412.2, down Rs3.1, or 0.8%, giving the company a valuation of Rs65.9 billion.