Real estate prices to grow in India

Real estate developer Ansal Housing and Constructions Ltd today said that real estate prices in the metropolitan cities will grow between 10-15 per cent while 20-25 per cent in small cities of the country during next 1-2 years.

Ansal Housing forecasted this growth despite the claims that property market in India is overheated.

"The real estate prices in Delhi, Mumbai and other metro cities will grow by 10-15 per cent and on the other hand, the prices in smaller cities will increase by 20-25 per cent," Ansal Housing & Constructions Ltd, Director, Kushagr Ansal told reporters here on Friday.

Although the overall scenario of prices in the country tends to remain bullish yet there are certain pockets in which the market has shown sign of overheating, he opined. "There are some places like Gurgaon where the real estate market has reached its peak but in other parts of the country the prices will grow," he said.

"During the development of real estate in Agra and Indore by our company, we observed that the real estate prices in these areas have increased by 20 and 30 per cent respectively," he said.

Meanwhile, Ansal Housing & Constructions Ltd on Friday announced to develop residential township in Karnal at a land of 99 acres which involve an investment of Rs 150 crore.

The company has also plans to develop such townships in Zirakpur, Jammu, Kurukshetra, Panchkula and Yamunanagar in the near future, he said. Having posted a turnover of Rs 200 crore during last year, the company expects an increase in total turnover by 60 per cent in this fiscal.


Source://http://economictimes.indiatimes.com

Investors earn USD 7b from IPOs

Investors have made handsome profits from initial public offerings (IPOs) in the last one year with a majority of the companies clocking considerable gains in their stock prices during their debut trade.
Shareholders gained more than $6.73 billion on the first day of trade in shares they received in IPOs of 76 companies during the last 12 months, an analysis shows.
Of the 76 companies, shares of as many as 45 firms ended with an average premium of 23 per cent to the issue price on the first day of trade, while 31 firms fell below.
In terms of gain in market capitalisation, real estate developers DLF and Parsvnath led the way, followed by public sector Power Finance Corporation and Aditya Birla Group’s Idea Cellular.
Closing up by eight per cent over the issue price of Rs 525, DLF added Rs 7,680 crore to its market cap at the end of first day’s trade.
After just a few days of trading, DLF crossed the one lakh-crore market capitalisation mark, becoming the first realty firm to achieve the feat.
Another real estate major Parsvnath Developers added more than Rs 4,100 crore to investors’ kitty after the scrip jumped by 75.43 per cent in its debut trade to Rs 526.30, well above its issue price of Rs 300.
PFC had a gain of more than Rs 3,000 crore on its first day on the bourses with a 31 per cent rise to close at Rs 111.55 over its issue price of Rs 85.
Not far behind was Idea Cellular, which cornered Rs 2,780 crore from the market as its scrip rose by 14 per cent.
Other gainers were Sobha Developers and Tech Mahindra, which added a combined total of over Rs 4,674 crore to investors’ kitty.
However, the world’s fastest growing economy China left behind India in terms of wealth garnered by firms in the first day of listing.
Over the past 12 months, out of the 113 IPOs in China, the value of more than a third of firms on the A-share market doubled on their debut.
In terms of the average first-day gains, China has given 97 per cent returns, translating into a combined gain of $24.4 billion.
In India, it was not a smooth ride for all investors who invested in IPOs over the past 12 months as some firms could not make positive returns in their debut trades.
The list of losers is led by oil exploration firm Cairn India, which saw an erosion of more than Rs 4,000 crore in investors’ wealth on its debut day itself after the scrip fell by 14 per cent to Rs 137.5, below its issue price of Rs 160.
Among other disappointing debuts, Fortis Healthcare and House of Pearls Fashion witnessed a reduction of Rs 181 crore and Rs 157 crore respectively in market valuations.
In percentage terms, Broadcast Initiatives, which owns Hindi news channel Janmat, ended with a loss of about 42 per cent over its issue price, followed by marble importer Oriental Trimex and fashion accessories maker Evinix Accessories, with a plunge of 38.65 per cent and 38.54 per cent respectively.

Source://thestatesman.net