Friday, November 27, 2009

Indian real estate companies are collectively looking to raise $US4.5 billion of equity

Hot picks for investors, say analysts, are companies that have land banks located within city limits in India's seven biggest cities: Mumbai, New Delhi, Kolkata, Bangalore, Chennai, Hyderabad and Pune.
Some examples are unlisted Godrej Properties and Oberoi Constructions, which have assets in India's financial capital and the country's most expensive real estate market, Mumbai.

During the IPO boom of 2007, the larger the land bank, the more successful the IPO, said bankers. Now, it's more about cash flow.

Land banks in prime locations and a focused building strategy, where projects can be developed in the next five years, will also be better valued.

“Having a large land bank will go against you this time as it shows that the builder has no focus,” said Shobhit Agarwal, joint managing director at the capital markets division of Jones Lang LaSalle Meghraj.

To read more, please, visit Sceptical market greets $5bn in Indian public offerings | The Australian

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