Real estate key for equity markets

Real estate could be the lynchpin for the equity markets and a failure of a large IPO could start a correction in the market.

Mr Deepak Parekh, Chairman-HDFC Bank, said, “If a large real estate IPO fails, it could have a serious repercussion on the market”.

Mr Parekh stated that many of the recent IPOs have been overpriced and the markets are looking expensive.

Further he added, “Companies raising money need to leave money on the table for investors”.

Indian realtors recently made a trend to raise money through IPOs, with at least five major real estate companies like Emaar MGF Land, Lodha Developers, Sahara Prime City, Ambience Ltd and DB Realty are looking to raise over tweleve thousand five hundred crore rupees.