HDIL ends below issue price on markets meltdown
Housing Development and Infrastructure (HDIL), a real estate company with significant operations in the Mumbai Metropolitan Region (MMR), has got a big hit from markets meltdown.
Markets continued to drift lower since subprime lending worries in US markets, which led to global fall. HDIL is one of the real estate stocks in recent listing, which slipped below its issue price of Rs 500. It ended at Rs 499.70, down Rs 28.95 or 5.48% from its previous close. The stock touched an intra-day low of Rs 489.15.
The company had recently raised more than Rs 1450 crore from its public issue of 300 lakh shares at issue price of Rs 500 per share. The issue subscribed 5.6 times. This is not the one stock, there are two more stocks, which fell below issue price like C and C Constructions and Akruti Nirman.
According to CLSA report, "Excess supply of realty paper may impact valuation of existing realty stocks". It also said that Indian Real Estate companies have raised USD 10 billion equity over last 12 months.
Source: moneycontrol.com (07 Aug, 2007)
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07-08-07
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