Track2Realty Exclusive-Yearly Analysis: Realty sector may appear to be bullish and project that downside is over with rosy forecast ahead, yet the decline in fortune is far from being over. As a matter of fact, the learning in the last four years has forced most of the leading players to restructure their project portfolio and shed the flab.
Track2Realty-Agencies: Reliance Portfolio Management Services, a part of the Anil Dhirubhai Ambani Group-owned Reliance Capital, plans to launch its maiden realty-focused fund by end-2012, with commitments of Rs 1,000 crore.
SRG Housing Finance Limited, a growing housing finance company with registered office atUdaipur in Rajasthan, proposes to enter the capital markets on 22nd August 2012 with a public issue of 35,04,000 of Rs 10 each. The Issue price for this IPO to be listed on SME platform of BSE has been fixed at Rs 20 per equity share of Rs 10 each. The Issue closes on 24th August 2012.
The Bangalore-based publicly-held Sobha Developers has said its sales realisation has gone up 26 per cent on a year-on-year basis while the sales volumes have gone up 25 per cent. On a sequential basis, the realisation is up 7 per cent while the sales being marginally down.
Realty sector may appear to be bullish and project that downside is over with rosy forecast ahead, yet the decline in fortune is far from being over. As a matter of fact, the learning in the last four years has made most of the leading players to restructure their project portfolio and shed the flab.
Revenues of top-25 realty companies declined 9.30% in Q4FY12, mainly on account of low sales off-take due to higher prices and higher mortgage rates, says a Knight Frank India Research on Economy and Realty at glance. The study says the Realty Index on Bombay Stock Exchange (BSE) has dropped by more than 26% during the last one year compared to a 10% fall in the Sensex during the last fiscal year.
Real estate companies reeling under the bad debt and falling sales graph are expected to record yet another bearish quarterly results with most of the listed companies’ shares already in the red. Listed real estate companies represented by the Realty Index on BSE have witnessed a fall of 1.7 per cent over the past one month.
Fearing share price manipulation with the help of certain ‘independent’ research reports onIndian companies, market watchdog Sebi may soon bring all kinds of research analysts under its regulatory ambit.
Once a happy hunting ground, real estate sector has suddenly woken up to the reality that raising money through Initial Public Offerings (IPOs) is getting harder with investors being lot more discerning today.
While the piling debt of the listed real estate companies has hit the headlines throughout the year 2011, the debt of the unlisted realty companies today stands at Rs.15 trillion.