According to Prime Database, there are some 46 real estate IPOs on the cards this year, following the success of DLF Ltd. Since Mint started, our news and Views pages have taken a close and often hard look at this sector precisely because of the growing role of real estate in India’s capital markets.
What we find so far is a good news, bad news kind of story. That so many realty companies are tapping the stock market is a healthy sign in a country that has long been obsessed with land. By subjecting themselves to Sebi and other accounting requirements, real estate companies will lift much of the opaqueness that has dominated this family-run industry. At the same time, as the final story in our three-part series on the impact of a softening real estate market underscores (Page 4), much of the money is being raised just as there is a huge slowdown in the sector. This may not be for long, but, for now, we would like to remind readers of the principle of caveat emptor.