All set for the DLF IPO?
If you are a brave soul & willing to invest in the DLF IPO (inspite of recent IPO performance and the carnage in real estate stocks), do take a note of the following - DLF yet to get rights for 60% of land:
Realty major DLF Ltd has re-filed the draft prospectus for its mega initial public offering (IPO), clarifying that it was yet to get a certificate for change of use for 60% of the developable land of 574 million sq ft mentioned in the document.
DLF’s clarification comes after a recent statement by M Damodaran, chairman, Securities and Exchange Board of India (Sebi), that realty companies’ IPO prospectuses must give land details, along with ownership status/agreement to purchase etc.
And if that doesn’t worry you, check out Sucheta Dalal’s take on this sector as well. There’s little doubt about the bright long-term prospects for Indian real estate. But in the short term, be careful with IPOs, residential real estate & such.
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