4 realty issues in pipeline to raise Rs 8,000 cr

As many as four public offers of equity  initial and follow-on  by realestate developers are in the pipeline, designed to raise a total of over Rs 8,000 crore.
 
 Along side, at least three construction companies are looking to raise justunder Rs 2,000 crore from the public. This is being interpreted as a sign of the coming of age of the sector and greater transparency seeping in.
 
 Among the real estate companies, Delhi-based DLF alone is looking to raiseRs 5,000 crore. Ansal Properties, a listed company expecting to set up a Rs10,000-crore township in the National Capital Region, has decided to floata follow-on issue of Rs 2,000 crore. Parsvnath Developers has filed a draftred herring prospectus for public issue of up to 3.32 crore equity sharesand hopes to raise Rs 1,000 crore by going public. In step with the trend,DS Kulkarni has planned an issue of Rs 75 crore.
 
 Among construction companies, Akruti Nirman plans to raise Rs 1,000 crore,Ahluwalia Contracts Rs 500 crore and IJM India Infrastructure Rs 400 crore.
 
 Real estate and construction companies are being spurred on to float publicissues in part because of the transparency that is seen to have set in inthe sector since the government allowed 100 per cent foreign directinvestment in construction under the automatic route in March 2005, alongwith overall relaxation of norms. Experts say this has increased investorinterest in such stocks.
 
 "Unitech's shares have shot up from Rs 20 to approximately Rs 3,000 in thelast two years," said Prithvi Haldea, chief executive officer,Primedatabase.
 
 With the construction sector growing at 12.5 per cent a year and having aweightage of 5.9 per cent in the gross domestic product, this is the righttime for construction companies to go public and unlock value.
 
 "Compared with private equity, these companies will prefer raising moneyfrom the stock market. Private equity may translate into interference,while the public market offers more freedom and better valuation," saidGaurav Dalmiya, chairman, Landmark Holding.