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Meet India's richest real estate baron


Meet India's richest real estate baron

Last updated: July 24 2007
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  • Meet India's richest real estate baron

    India's real estate inductry is actually growing... Now read some new developments

    DLF promoter K P Singh has emerged as the richest real estate baron after his company's initial public offering closed on June 14.

    Promoters of the dozen top listed real estate developers in the country, including DLF Ltd, which will be listed next month, are worth a massive Rs 125,845 crore (or over $30 billion).

    However, the lion's share of this net worth (derived on the basis of the latest m-cap) lies with DLF's K P Singh and his family -- Rs 77,915 crore (around $19 billion) based on the allotment price of Rs 525 per share and their shareholding of around 87.3 per cent in the company.

    According to BS research, this makes K P Singh the fourth richest Indian by today's market capitalisation, after Mukesh Ambani, Anil Ambani and Sunil Mittal. He overtakes Wipro's [Get Quote] Azim Premji, who ranks immediately after him.

    In effect, the DLF promoter family accounts for around 60 per cent of the realty wealth as denoted by market cap.

    Second, and by a distant margin, is the Unitech Ltd [Get Quote] promoter family -- which includes Ramesh Chandra and his sons Sanjay and Ajay. Their net worth is about half of DLF's --at Rs 30,544 crore (around $7.4 billion).

    The Unitech promoters hold a 74.33 per cent stake in the listed entity. Last August, Business Standard had valued Ramesh Chandra's net worth at Rs 12,670 crore.

    In March, Forbes ranked Chandra as the world's 114th richest billionaire.

    The substantial difference between the net worth of DLF and Unitech promoters is significant because the two companies are considered comparable in terms of their land assets, among other things.

    The Bangalore-based Menon family and associates own just under 87 per cent of Sobha Developers [Get Quote]. At Rs 5,277 crore ($1.28 billion), the Menons' net worth is nearly a fifth of the Unitech family's.

    Parsvnath Developers' [Get Quote] Pradeep Jain and family are ranked fourth -- with Rs 4,768 crore ($1.16 billion) of net worth on the basis of their 80.33 per cent stake in the company.

  • #2


    Re : Meet India's richest real estate baron

    Country’s third trillionaire

    Hey, Kushal Pal Singh is off course India’s richest builder and what I have read recently is that he has became the country’s third trillionaire in rupee terms as the share price of DLF has seen very gud rise recently. After Mr Singh joined the elite club with the Ambani brothers, his company has another story which is masked by stunning profit numbers.


    • #3


      Re : Meet India's richest real estate baron

      Dlf’s Kp Singh Is India’s Third Rupee Trillionaire

      Mint | The Hindu Business Line | The Economic Times | DNA | Deccan Chronicle | The Times of India | The Asian Age | Mumbai Mirror | Business Standard |

      India’s richest real estate entrepreneur Kushal Pal Singh became the country’s third trillionaire in rupee terms on 23 July, with a rise of 4 percent in his group’s flagship company DLF Ltd, pushing its market value to about Rs1, 14,744 crore.

      Singh has joined Mukesh Ambani and his younger brother Anil in the club of India’s rupee trillionaires. Their wealth, measured in terms of their holdings in various group companies, rose to about Rs1, 61,000 crore and Rs1, 05,000 crore respectively. Following a 4.07% jump in the share price of DLF, which today settled at Rs673.05 at the Bombay Stock Exchange, Singh’s net wealth rose to approximately Rs1, 01,250 crore at the end of the trading session.

      According to information available with the stock exchanges, the total promoter holding in the New Delhi-based DLF, represented by Singh, is currently 88.24%. Singh’s stake has appreciated by over Rs 22,000 crore since the company’s listing, while DLF’s market cap has grown by over Rs 25,000 crore in the same period.

      DLF was listed on 5 July on a strong note, with the company’s market cap crossing the Rs1, 00,000-crore mark on the very first day in the intraday trade. However, the company achieved a closing market cap of Rs1, 00,000 crore only on 12 July. Prior to the listing, Singh’s stake was worth about Rs 79,000 crore, based on an offer price of Rs525 a share, at which the company sold its shares in its Rs 9,187.5 crore public issue.
      Last edited July 24 2007, 11:06 AM.


      • #4


        Re : Meet India's richest real estate baron

        DLF boss is a trillionaire but.....

        Although, it is a boom time for DLF and its chairman MR. KP SINGH has recently become the third Indian Trillionaire but some facts have come forward regarding the company's 'accounting profits' which highlight the bottom line....

        Explore the Truth:

        ON MONDAY, India’s richest builder Kushal Pal Singh became the country’s third trillionaire in rupee terms as the share price of DLF, his flagship company, soared. But even as Mr Singh joined the elite club with the Ambani brothers, his company has another story that is masked by stunning profit numbers.

        In the first quarter, DLF recorded a net profit of Rs 1,524 crore. The figure, however, appears less impressive on a second look. The reported numbers are only ‘accounting profits’ that have not translated into an equivalent amount of ‘cash flow’ into company’s books. The company continues to work on negative cash flows.

        During the quarter, the company reported a negative cash flow of Rs 2,270 crore, on account of sundry debtors and increase in inventory. According to the company’s quarterly filings, sundry debtors shot as much as 150% during April-June this year and accounted for over nearly threefourths of its consolidated net sales during three-month period.

        This shows the company follows a policy of advance booking for its properties. While almost all real estate developers do this to show a higher top line, in case of DLF the number seems to be abnormally high.

        In fact, if not for the IPO proceeds, the company would have faced a crunch. IPO proceeds accounted for almost the whole of company’s closing cash balance at the end of the first quarter. DLF had raised Rs 9,625 crore from the primary market last month.

        The company, however, declared a generous 100% dividend for all its shareholders (equivalent to Rs 340 crore), including the new IPO allotees.

        The question crops up as to whether the company is arranging the payout from the IPO proceeds.

        A closer analysis shows sundry debtors and increase in inventory accounts for close to 85% of the reported net sales of Rs 3,074 crore. The point is, how much cash profit has been realised from the balance sales amount? This means out of the huge net profit shown, only a small portion would actually be hard cash realisation.

        Meanwhile, the stock has remained in news. DLF’s successful bid for the Dwarka convention centre pushed up the scrip by almost 5%. The actual growth from this would, however, come only by FY10 and FY11. DLF is India’s largest real estate company and owns development rights to 574 million square feet of real estate, of which 51% is in the National Capital Region (NCR) and 23% in Kolkata.


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