FIIs Reduced Investment In Real Estate

BSE reports shows that Foreign institutional investors (FIIs) have reduced their investment in real estate companies, mainly Parsvnath Developers and Unitech by 0.8 and 2 % correspondingly, year-on-year.

According to shareholding data available on BSE, the domestic financial institutions and banks have amplified their inevstment in Unitech Ltd by more than 1.5%, while Foreign institutional investors (FIIs) have reduced their stake.

In the case of Parsvnath, there were marginal changes in the institutional shareholding (mutual funds/UTI and financial institutions and banks) within the non-promoter category, even as the ‘individual’ holding get higher by just less than a percentage point.

In the case of Unitech, the stake held by various mutual funds and UTI stood at 0.51% on June 30, 2008 a bit higher than 0.25% in 2007.

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  1. Posted September 8, 2008 at 11:19 pm | Permalink

    With the property market going through a slump, private equity investors are shifting their investments to companies engaged in real estate ancillary businesses, where returns are perceived as fairly safe. “Real estate ancillary businesses are attractive,” said Mr. Sourav Goswami, the Managing Director of a leading private real estate investment company, Walton Street Capital. “We continue to look at opportunities in this space, but the main challenge is the capability of the managements to carry out expansions. Such companies face shortage of talent and the stretch level is very thin.” There are at least six private equity investors who are learnt to be in talks with Pune-based Universal Construction Machinery and Equipment. This company manufactures and sells construction equipment, and had a net profit of Rs 7 crore on sales of Rs 130 crore in 2007-08. Mumbai-based Sankapan Group also revealed that three private equity investors are interested in investing in its four subsidiaries.For more view-

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