DLF entry to rewrite real estate story - Indian Real Estate Forum

Tanuj · 29-05-07

The impending entry of DLF Ltd, the big daddy of the real estate sector, is creating ripples in the marketplace as investors begin to re-rate other companies in the sector.

DLF’s mega issue of Rs 9,625 crore, at the upper band, is expected to push up the prices of other real estate stocks. Help also came in from an unlikely quarter when DLF’s rival Unitech announced a 1:1 bonus issue.

The sector, which has under-performed since the beginning of the year, has started witnessing an upsurge ever since DLF announced its price band on Thursday.

Such large IPOs usually give momentum to the entire sector. DLF’s issue, too, should give a boost to real estate on stock exchange as the sentiments will improve. Institutions are expected to be the principle subscriber to the issue and retail investors may stay away due to uncertainties surrounding the issue.
While Sobha Developers and Mahindra Gesco bucked the trend, almost all the other biggies from the real estate sector have ended positively on the stock exchange in the last two trading days, since May 25.

Unitech, DLF’s peer which will shortly be dethroned as the biggest listed real estate company, once K P Singh’s company gets listed on the stock bourses, has gained 8.93% in value. Unity Infrastructure, another realty play, gained 10%, while Ansal Properties and Orbit Corp moved up by 3.29% and 2.72% respectively.

A research of 27 top real estate companies shows that the entire sector moved up on an average by 4.68%. A report from foreign brokerage house, Macquarie, states that looking at DLF’s valuation, listed companies such as Unitech seems to be underperforming. DLF, in its current proposed form, makes Unitech look attractive at today’s market pricing. The report compares the two companies on parameters such as land bank.

Most of the market players expected DLF to be priced at about Rs 600 per share. The lower pricing (price band of Rs 500 - 550) is making the stock look attractive and is expected to be oversubscribed. DLF has already tied with institutions to pull the IPO through.

29-05-07	#1
Tanuj New Member Join Date: Oct 2006 Posts: 45 Thanks: 0 Thanked 0 Times in 0 Posts	DLF entry to rewrite real estate story The impending entry of DLF Ltd, the big daddy of the real estate sector, is creating ripples in the marketplace as investors begin to re-rate other companies in the sector. DLF’s mega issue of Rs 9,625 crore, at the upper band, is expected to push up the prices of other real estate stocks. Help also came in from an unlikely quarter when DLF’s rival Unitech announced a 1:1 bonus issue. The sector, which has under-performed since the beginning of the year, has started witnessing an upsurge ever since DLF announced its price band on Thursday. Such large IPOs usually give momentum to the entire sector. DLF’s issue, too, should give a boost to real estate on stock exchange as the sentiments will improve. Institutions are expected to be the principle subscriber to the issue and retail investors may stay away due to uncertainties surrounding the issue. While Sobha Developers and Mahindra Gesco bucked the trend, almost all the other biggies from the real estate sector have ended positively on the stock exchange in the last two trading days, since May 25. Unitech, DLF’s peer which will shortly be dethroned as the biggest listed real estate company, once K P Singh’s company gets listed on the stock bourses, has gained 8.93% in value. Unity Infrastructure, another realty play, gained 10%, while Ansal Properties and Orbit Corp moved up by 3.29% and 2.72% respectively. A research of 27 top real estate companies shows that the entire sector moved up on an average by 4.68%. A report from foreign brokerage house, Macquarie, states that looking at DLF’s valuation, listed companies such as Unitech seems to be underperforming. DLF, in its current proposed form, makes Unitech look attractive at today’s market pricing. The report compares the two companies on parameters such as land bank. Most of the market players expected DLF to be priced at about Rs 600 per share. The lower pricing (price band of Rs 500 - 550) is making the stock look attractive and is expected to be oversubscribed. DLF has already tied with institutions to pull the IPO through.

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