Real estate stocks rose by as much as 8 per cent as the initial public offering of DLF was subscribed over 65 per cent within three hours of its opening.
MUMBAI: Real estate stocks on Monday rose by as much as 8 per cent as the initial public offering of realty giant DLF, the country's largest IPO, was subscribed over 65 per cent within three hours of its opening.
Shares of Unitech, so far the country's largest realty firm in terms of market capitalisation, rose by nearly 4 per cent to Rs 524.90 while stocks of Parsvnath Developers soared by 3 per cent to Rs 329.70, latest data on the BSE show.
As the news of Qualified Institutional Buyers queueing up to subscribe to the issue of the Gurgaon-based company spread, shares of almost all major players in the sector zoomed as investors transacted on an average two lakh shares per stock.
The shares of Delhi-based Ansal Properties rose the maximum by 7.7 per cent or nearly Rs 23 while shares of Sobha Developers gained 3 per cent to touch its intra-day high of Rs 880.10, data available show on the bourses show.
DLF would mop up up to Rs 9,625 crore at the upper band of Rs 550 per share, resulting in a market value of Rs 93,500 crore and displacing Unitech as the top listed realty firm.
As per the BSE website, the DLF issue received bids for over 11.3 crore shares as against 17.50 crore shares on offer.
Smaller players like Lok Housing, Mahindra Gesco and Peninsula Land rose by 2 to 4 per cent as did shares of Orbit Corporation, the newest listed firm in the space, gaining Rs 15 (6.5 per cent) to touch its intra-day high of Rs 245.90.
Sector analysts see the DLF issue as an important landmark for the real estate industry, which off-late has seen stock valuations take a dip on concerns of overheating.
Depending on DLF's performance, others like Omaxe, which has lined up a public issue to mop up around Rs 1,000 crore, will get important cues, said an analyst.
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