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!
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