look news india
Mumbai: There has been a tremendous surge in IPOs in India's real estate sector this year. Till October 20, 123 IPOs have been listed, which is more than last year. This increase reflects economic expectations and good liquidity in the market
About Rs 13,500 crore is expected to be raised through real estate IPOs in 2024, which is almost double from last year. Along with this, participation of retail and institutional investors is also increasing, due to which the earnings and market reputation of the companies are improving. 47 real estate IPOs have been listed since 2010.
This growth is attributed to strong housing demand, increased office leasing, expansion of flexible space operators and tourism growth. Market sentiment in the real estate sector is positive.
There have been real estate IPOs worth Rs 21 crore since 2021. There has been a collection of Rs 31,900 crore, which is double from 2017-2020. 46 per cent of that capital was raised from housing finance companies, while REITs contributed 22 per cent. At the same time, residential developers raised Rs 5,600 crore, which is 10 times more than last year.
BSE Realty Index has outperformed Sensex this year, gaining more than 30 percent. Interestingly, real estate IPOs have outperformed the realty index by about 20 per cent since 2010 till 2024. More than 90 per cent of real estate IPOs have been oversubscribed this year, reflecting positive market sentiment and investor confidence.
Real estate companies raised Rs 12,800 crore through QIP
In view of the huge increase in housing demand after Corona, the country's listed real estate companies have raised a total of Rs 12,800 crore through Qualified Institutional Placement (QIP) in the first nine months of 2024 for expansion.
In the first nine months of the current year, companies across all sectors have raised a total of Rs 75,923 crore through QIP. In which real estate companies have 17 percent stake, while the renewable energy sector has been in second place. Considering the high volume of QIP, it can be said that the real estate sector is playing an important role in the capital market of the country.