Tag Archives: Unitech

Indiabulls REIT Drops Ten Per Cent on Singapore Debut

June 13, 2008 – 6:22 am

An uninspiring opening and an even worse close towards the end of the day marked Indiabulls Properties Investment Trust’s debut on the Singapore Exchange on 11th june.
During the day, it went down to as low as 0.88 cents and closed 10% below the issue price of S$1. The stock could not breach its issue price of S$1, reports Supriya Verma in Mumbai.
The trust sold shares at S$1 each, the bottom of the proposed range, after delaying the sale by a day, According to a June 6 statement, the division had aimed for as much as S$388.3 million from selling shares at S$1-1 .10 a piece.
Indiabulls Properties had to go ahead with FY10E distribution yields of 9-10 %.
Indiabulls Properties Investment Trust is the first international offering in this year by any Indian developer. Spiraling property prices, higher interest rate for the past 6 yrs and impending volatility in global markets had led to other prominent developers like DLF and Unitech to postpone their offerings.

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India’s Only Second To US In IPO Debacle

May 31, 2008 – 5:30 am

After the US, India is worst-hit market when it comes to the postponement of IPOs in the first quarter of 2008. Out of the twenty four billion dollar worth of IPOs that were postponed, US accounted for $6.12 billion while the figure for Indian companies stood at $5.98 billion. The decision to defer or shelve IPOs has been taken because of market sentiments and the global credit crisis. Read More »

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Emaar’s Three SPVs.

May 2, 2008 – 7:21 am

Goldman Sachs, Deutsche Bank and another financial investor are thinking to make a shared investment of eight hundred million dollar in three special purpose vehicles being created by real estate major Emaar MGF. Each SPV will have one financial investor.
Delhi-based developer is in advanced talks with private equity players and is likely to close three separate deals within 30 days. No comment came from Emaar MGF on this issue. The deals will be the first big fund flow into the real estate firm since February.

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Real Estate Developers looking for advanced technology to reduce the cost

April 29, 2008 – 2:24 am

Mumbai, Apr 28 Real estate developers in India are planning alternative measures to reduce costs of construction by around 15 to 20% owing to the current hike in raw material inputs costs for construction, particularly, cement. Red Fort Capital, in association with Nagarjuna Constructions and DLF, has replaced the use of cement in residential and hotel projects with cellular light weight concrete.
Besides, Red Fort Capital is presently talking to big developers in India to replace the use of cement with cellular light weight concrete. “This will benefit real estate developers in reducing costs of construction by 15%.
This is an promising trend in the Indian real estate market,” Kuldip Chawlla, director, Red Fort Capital Advisors Private Ltd, told FE.
According to Chawlla, “Cellular light weight concrete reduces the weight of cement needed in beams and columns, making them more durable, long lasting and generate cost of savings of upto at Rs 100 to Rs 200 per sq ft. Not only that, with the use of cellular light weight concrete, developers will be able to build affordable homes targeted at middle income groups at a much faster pace. ”
Big developers such as Larsen & Toubro, Hiranandani Constructions, Rahejas, Unitech, DLF and Kalpataru are looking at using cellular light weight concrete instead of cement for certain projects. Red Fort Capital is currently talking to these players to provide them with alternative options in construction.

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Impact Of Share Market On Real Estate in India

March 18, 2008 – 7:00 am

Just fort night back we have seen many Indian promoters figured in the worldwide billionaire list. The Sensex’s climb previous year saw the likes of DLF’s KP Singh coming out of nowhere and becoming the third richest Indian for sometime. And there was much rumour as to when, rather than if, Mukesh and Anil Ambani would eclipse Bill Gates.

However, the recent stock market chaos has resulted in an erosion of net worth of India’s wealthy lot, which is just as spectacular as the rise was. In all, the net worth of India’s top 10 promoters is down by 35 percent since the peak in early January.

Indian biggies including Mukesh Ambani, DLF’s Singh and Sunil Mittal of Bharti Airtel have seen their combined net worth shrink by around $100 billion in the preceding two months.

Topping the list of losers is India’s biggest real estate industrialist KP Singh. His net worth has almost halved to $22.5 billion from a peak of $45 billion in January.

One more real estate baron to lose acutely during this meltdown is R. Chandra of Unitech, whose market cap has halved since this bear phase began. The Hinduja Group too has taken a knock with the market value of its holdings down by nearly 43 percent.

The promoters who have seen maximum wealth erosion are those with business interests in real estate, power and energy.

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Downtrend In Realty Sector

March 18, 2008 – 6:36 am

MUMBAI: When the Indian economy was on an upswing, brokerage and real estate stocks were said to be the darlings of equity bourses.

When the going was good, some also made their debut on stock exchanges and were a big hit with the investing community. Never mind the fact that some of these stocks were commanding a valuation ahead of some of the reputed state-owned banks in the country.

Now, with global economy in turmoil and the decoupling theory now being dismissed as frivolous, financial services and real estate sectors are finding a few takers. Most of the recently listed entities from these sectors have lost more than 35-40% in the recent past.

“While all sectors have taken a hit, brokerage stocks have been singled out for punishment due to the swift run-up after listing,” he adds. On a different note, the land bank story is also not finding favour anymore. Stocks like DLF, Puravankara, Omaxe, IVR Prime, Parsvnath Developers, Orbit Corporation, Unitech and HDIL have been in the doldrums since the start of the current calendar year.

While Omaxe has lost more than 60% in the past two months, IVR Prime has lost around 55%. Parsvnath Developers has also lost around 60% since January 17.

Similarly, DLF, which was gaining ground almost on a daily basis over reports related to the Singapore listing of one of its group firms, has shed almost 50% in the last two months. May be, the scenario can be summed up in Deutsche Bank’s words,“Chasing a land bank is unwarranted”.

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Unitech posts 39% rise in net profit

February 1, 2008 – 2:07 am

January 31, 2008, NEW DELHI: Unitech posted 39 percent increase in consolidated net profit. It got an increment from 377.84 crore to 525.78 crore in a quarter. Total income of Unitech group during the quarter under review was Rs 1165.11 crore, which is 19% high from last year.

Mr. Sanjay Chandra, Managing Director, Unitech Ltd, said, “Higher sales, better price realization and strong project execution have resulted in a robust financial performance during the period. With many projects in the pipeline, we expect this strong performance to continue”.

The consolidated total income of this group from April 2007 to December 2007 stood at Rs 3,129.04 crore and consolidated profit after tax was Rs 1,301.58 crore.

The company made drastic step in Mumbai market by acquiring 50% stake in a company executing a 97 acre slum rehabilitation project. Company has also got a tender to develop a 1,750 acre township in Visakhapatnam. Unitech has also obtained a tender to develop a 350-acre township in Hyderabad.

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