A Delhi Based Real Estate Company Is In Debt

A Delhi based real estate company, which claims to have transformed the dreams of several of its customers to reality, is being trampled by a leading Mumbai-based NBFC.

The promoters of the real estate company had pledged its shares with the NBFC and accepted a funding of Rs 300 crore to meet its short-term working capital. But as a result of the prolonged bearish phase and constant pounding of realty shares, the promoters are unable to meet margin calls that are triggered when share prices slide.

If market sources are to be believed, the company is not in a position to even meet the interest due on its borrowings. Fearing that the loan would end up as bad debt, the NBFC has started dumping the shares of the real estate developer, triggering a further slide in the stock price.

The stock is already down 80% from its peak price seen some months ago. But market circles feel the hammering is not yet over, and the stock may test new lows in the coming days.

One Comment

  1. Posted August 21, 2008 at 1:16 am | Permalink

    The Indian real estate sector might be going through a major downturn but to some extent it is also making things attractive for foreign investors. The slowdown, in fact, has set in more realistic valuations and growth-oriented investment opportunities for biggies to close in profitable deals. The recession in the US and the fact that China is tightening its FDI policy has aided a remarkable shift in investment. Experts feel that cities like Mumbai, Bangalore and the NCR region are hot investment destinations because of their strategic importance. Considering this, Mr. Donald Trump Junior is all set to launch a $1bn fund to buy property in India and Lehman Brothers Real Estate Partners has recently acquired a 50% stake in Unitech’s Mumbai project. Also, TAIB Bank, a leading private bank based in Bahrain has recently picked up a 26% stake into a project of Anant Raj Industries.For more view- realtydigest.blogspot.com

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