Real estate IPOs under a cloud

A couple of recent articles show real estate IPOs facing tougher times:

  • Real estate IPO statements lack clarity
  • Sebi Chairman, M Damodaran comments that there are statements in real-estate IPOs that lacks clarity and they have sought clarity on land bank disclosure for realty IPOs . . . what is it that they claim to be the land under their ownership, the valuation of that land and whether there are complete and correct disclosures.

  • Property IPO hopefuls forced to lower sights
  • . . . rising interest rates, steep valuations, lack of earnings, a market sell-off and the poor performance of recent issues have made investors edgy. Demand for new property issues has been soured by the poor market showing by recent market newcomers.

I posted a chart of major real estate stocks recently; not an encouraging sign for the IPOs yet to come!

Related Posts:

  • All set for the DLF IPO?
  • IPOs in India - July through December 2006
  • Official real estate price index for India
  • April-June IPOs: Double digit losses, on average
  • Indian Real Estate: Bloomberg, FICCI
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