Realty firms to hit market with mega IPO plans

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On the heels of huge success of Parsvnath Developers' public issue that generated demand for over Rs 60,000 crore worth shares, domestic real estate firms are planning to raise nearly Rs 22,500 crore through their public offerings, reports The Economic Times.

The presence of Indian property sector has been negligible on the Dalal Street so far with a handful of listed realty firms accounting for less than 1% of the country's overall stock market capitalisation.

However, it could be a different scenario altogether with more than a dozen companies finalising their plans to hit the capital market.

Out of these, at least five companies are likely to hit the market with their IPOs on the domestic or international stock exchanges before the end of this fiscal year, which could generate a collective amount of Rs 18,000 crore (over USD 4 billion).

Besides, two already listed real estate firms - Unitech and Ansal Properties are believed to be mulling over plans to raise further capital from the international markets or through the follow-on public offerings, FPOs.

Investment bankers close to the developments said that the two companies could collectively generate over USD 1 billion (Rs 4,500 crore) from the domestic or international markets - which would take the combined total proceeds for the sector to Rs 22,500 crore (over USD 5 billion).

DLF, one of the largest players in the space, is currently reviving its IPO plans after failing in its first attempt earlier this year. The total proceeds from the much-hyped IPO, which was shelved in August this year, was being pegged at above Rs 15,000 crore and could have been the largest ever public issue in the country.