DLF trading below IPO price; BSE Realty down 55% from high

Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Realty stocks are struggling now a days to hold their earlier lows or issue prices as they have been taking huge beating on the bourses due to n numbers of reasons like softening real estate prices in major part of the country, hardened interest rates, no signs of cut in interest rates from RBI, banks hardened rules and regulations for providing home loans, US subprime crisis, undersubscription of Emmar MGF etc.

BSE Realty Index had touched an all-time high of 13848.09 on January 8, 2008 and on Friday, June 6, 2008 closed at 6,210.30, a sharp decline of 55.15% from that high. The Sensex ended at 15,572.18, a crash of 26.57% from its all-time high of 21206.77. It has been a huge crack in the realty index, then what about the real estate IPOs, lets see..

To start with DLF, India's largest real estate developer, has slipped below its issue price of Rs 525 and touched an intraday low of Rs 517, down by 1.5% or Rs 8. The stock closed below issue price at Rs 519.95, down by Rs 18.5 or 3.44 over previous close of Rs 538.45 on the BSE. On Thursday, it had broken issue price on the NSE but managed to close above that.

There are nine (IPOs) companies that had listed on the bourses, out of which 66% are trading below issue price like Puravankara was down by 44% at Rs 222.05 versus issue price of Rs 400, Omaxe down by 42% at Rs 180.7 versus issue price of Rs 310 and Parsvnath down by 41% at Rs 178.15 versus issue price of Rs 300.

However, only 33% IPOs are above issue price like HDIL, Akruti City and Orbit Corp.

Other than real estate IPOs, some of big names like Reliance Power, Futures Capital, BGR Energy, Central Bank, Edelweiss Capital etc are also trading below issue price.

Equity	Issue Price	Current Price	%Gain/Loss
Puravankara Pro	400	222.05	-44.49
Omaxe	310	180.7	-41.71
Parsvnath	300	178.15	-40.62
Kolte-Patil	145	96.15	-33.69
Sobha Developer	640	437.3	-31.67
DLF	525	519.95	-0.96
HDIL	500	629.05	25.81
Akruti City	540	900.65	66.79
Orbit Corporati	110	452.25	311.14
Reliance Power *	450	193.6	-56.98
Brigade Enterp	390	178.3	-54.28
Future Capital	765	434.5	-43.2
Firstsource Sol	64	36.9	-42.34
BGR Energy	480	302.15	-37.05
Fortis Health	108	71.1	-34.17
Central Bank	102	76.15	-25.34
Edelweiss Cap	825	645.5	-21.76
Motilal Oswal F	825	762.45	-7.58
Rural Elect Cor	105	101.85	-3
IRB Infra	185	184.5	-0.27

 

 

 

 

 

 

 

 

 

 

 

 

*Bonus adjustment @ 3:5