About 20 real estate companies have raised Rs. 21,306 crore through IPO (Initial Public offer) & FPO (Follow on Public offer) since 2005.
According to a survey by Knight Frank India,''Of this, 68% was raised in 2007. As a leveraged balance sheet was strained amidst slowing sales, developers resorted to selling land, TDR and noncore assets & some even resorted to pledging promoter equity. Private Equity (PE) and HNI (High Networth Individuals) money also salvaged the position of the industry"
Further, the funding avenues exploited earlier seem to have dried-up. For instance, between Q1 2009-10 and Q3 2011-12, FDI (Foreign Direct Invsetment) in real estate sector declined by a drastic 92 per cent and its share in total FDI shrunk from 16.83 % to 1.94%. Transaction activity remains slack & the prospective buyers are sitting on the fence in anticipation of price correction.
According to a survey by Knight Frank India,''Of this, 68% was raised in 2007. As a leveraged balance sheet was strained amidst slowing sales, developers resorted to selling land, TDR and noncore assets & some even resorted to pledging promoter equity. Private Equity (PE) and HNI (High Networth Individuals) money also salvaged the position of the industry"
Further, the funding avenues exploited earlier seem to have dried-up. For instance, between Q1 2009-10 and Q3 2011-12, FDI (Foreign Direct Invsetment) in real estate sector declined by a drastic 92 per cent and its share in total FDI shrunk from 16.83 % to 1.94%. Transaction activity remains slack & the prospective buyers are sitting on the fence in anticipation of price correction.
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