Realty stocks at steep discount to IPO price

Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Kolte-Patil Developers | Puravankara Projects | IVRCL Assets and Holdings | Omaxe | Housing Development and Infrastructure | DLF | Orbit Corporation | Hubtown | Sobha Developers | Parsvnath Developers |

Gone are the days when investors were enthusiastic about real estate companies and when bankers, financiers and FIIs alike were investing in real estate projects. With the US-led global slowdown, the subsequent tightening of credit and the cyclical Indian property boom ending at the same, the high-flying real estate sector suddenly started appearing not so bullish. All of it took its toll on realty stocks as they got battered on the bourses quite heavily.

Real estate stocks like Puravankara Projects, Brigade Enterprises, Parsvnath, Sobha Developer, Omaxe, Kolte Patil and HDIL are quoting at steep discount to their issue price as well as all-time highs. These stocks slipped more than 80% from their issue price. The Realty Index has fallen more than the 30-share BSE Sensex; Sensex lost 60% from its all-time high while the BSE Realty Index crashed 88%.

Realty leader, DLF lost 61% from its issue price while fell 83% from its all-time high.

However, only one stock is still above its issue price is Akruti City. The data collated:

Equity	Issue Price	Current Price	%Gain/Loss
IVR Prime	550	36.65	-93.34
Puravankara Proj	400	42.4	-89.4
Brigade Enterp	390	43.95	-88.73
Parsvnath	300	35.1	-88.3
Sobha Developer	640	88.15	-86.23
Omaxe	310	48.45	-84.37
Kolte-Patil	145	23.65	-83.69
**HDIL	500	87.65	-82.47
DLF	525	205.2	-60.91
Orbit Corporati	110	53.65	-51.23
Akruti City	540	625	15.74

 

 

 

 

 

 

 

 

 

Stocks off from 52-week highs

Orbit Corp, Parsvnath, HDIL, IVR Prime, Omaxe, Puravankara Projects, Sobha Developer and Kolte Patil fell 91-95% from 52-week highs.

Equity	52-Week High	Current Price	%Gain/Loss
Orbit Corporati	1079.95	53.65	-95.03
Parsvnath	598	35.1	-94.13
**HDIL	1432	87.65	-93.88
IVR Prime	509.9	36.65	-92.81
Omaxe	613	48.45	-92.10
Puravankara Pro	535	42.4	-92.07
Sobha Developer	1041.1	88.15	-91.53
Kolte-Patil	272	23.65	-91.31
Brigade Enterp	428	43.95	-89.73
BSE Realty Index	13848.09	1679.06	-87.88
DLF	1225	205.2	-83.25
Sensex	21206.77	8451.01	-60.15
Akruti City	1399	625	-55.33

 

 

 

 

 

 

 

 

 

 

** HDIL not adjusted for bonus (2:7).

If we adjust HDIL's issue price due to bonus issue, then the stock is still way below issue price. Adjusted issue price comes to Rs 388.88 and closing price was Rs 87.65, so the stock fell 77.46% from its issue price.

After the adjustment its 52-week high is Rs 1113.77, so the stock lost over 92% from that high.