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Last Updated : Nov 07, 2019 04:04 PM IST | Source: Moneycontrol.com

Govt booster for stalled housing projects puts realty stocks in focus; Indiabull Real gains 5%

Finance Minister Nirmala Sitharaman on November 6 announced another set of measures to boost the beleaguered real estate sector and infuse confidence among hassled homebuyers.

Representative image
Representative image

The real estate stocks ended with a gains of 1-5 percent on November 7, a day after Finance Minister Nirmala Sitharaman announced measures to boost the stressed real estate sector.

Finance Minister Nirmala Sitharaman on November 6 announced another set of measures to boost the beleaguered real estate sector and infuse confidence among hassled homebuyers.

Providing relief to millions of homebuyers, the Cabinet approved the creation of a "professionally managed" Rs 25,000 crore fund for boosting stalled middle and low-income RERA registered housing projects that are networth positive, Finance Minister Nirmala Sitharaman said.

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"The move will help relieve financial stress faced by a large number of homebuyers. This will also release a large number of funds stuck in these projects for productive use in the economy," Sitharaman said at a press meet.

Also Read - Government approves Rs 25,000 crore fund for stalled housing projects

Mitesh Thakkar of Miteshthakkar.com is of the view that one may buy Ajmera Realty with stop loss at Rs 125 and target of Rs 142.

"It's a positive move for the liquidity starved real estate sector. Rs 25,000 crore will be a good amount to address chronic situations. Though one need to see the modalities on implementation, time is of essence in delayed projects," Sharad Mittal, CEO & Head, Motilal Oswal Real Estate Funds.

Here are the key points from the press meet:
- SBI Cap will prioritise projects as per viability
- Net worth key factor for disbursement
- SBI Cap will manage real estate AIF through an escrow account
- Projects can be NPAs/incomplete to be eligible, but not marked for liquidation by NCLT
- Projects must be net worth positive to avail funds, percentage of completion not a criteria- RBI to soon issue clarificatory note on realty fund

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First Published on Nov 7, 2019 09:39 am
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