Realty scramble

Realty scramble
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First Published: Mon, May 25 2009. 11 10 PM IST

Updated: Mon, May 25 2009. 11 10 PM IST
In the past couple of months, real estate developers have managed to raise equity either through instruments such as a qualified institutional placement (QIP) or through stake sale by promoters as in the case of DLF Ltd. It all started with Unitech Ltd, India’s second largest developer by market value, which on 16 April said it raised around $325 million (around Rs1,535 crore) through a QIP.
The response to Unitech’s QIP caught everyone by surprise and according to the company it received demand from investors for close to $700 million. The next month on 14 May, DLF, India’s largest listed real estate developer, raised around Rs3,860 crore, when its promoters, the Singh family, sold a 9.9% stake in the firm to investors.
Also Read Realty Scramble (Graphics)
Since then, other developers have also announced plans to raise equity. Mumbai-based developer Housing Development and Infrastructure Ltd (HDIL) has announced plans to raise at least Rs2,800 crore from sale of shares. Parsvnath Developers Ltd, a New Delhi-based developer, is looking at raising about Rs2,500 crore through a QIP or through issuance of further securities to investors. Developers are hoping that the equity raised will help them in lowering debt and funding new projects.
Graphics by Ahmed Raza Khan / Mint
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First Published: Mon, May 25 2009. 11 10 PM IST
More Topics: DLF | QIP | Realty | Unitech | Parsvnath Developers |