Several Indian real estate companies, including BPTP Ltd and Smartworld Developers, are rethinking or shelving their initial public offering (IPO) plans, which were expected to raise around 15,000 crore, due to weaker housing demand, higher costs, and a more cautious investment climate.
Unable to pay for the largest ever land deal in India, valued at Rs 5,006 crore, realty player BPTP Ltd has applied for surrendering it to the New Okhla Industrial Development Authority. "Following the UP government policy announcement, BPTP has made an application to the Noida authority for (the) surrender of (the) plot and is awaiting NOIDA's decision," BPTP Ltd Director Sudhanshu Tripathi said in a statement in New Delhi.
The government's Budget announcements providing tax holiday for data centres, setting up of city economic regions (CERs) and funding to improve infrastructure in Tier-II and -III cities may give an indirect boost to India's realty sector, said industry executives.
The turmoil in the global financial markets has cast its shadow on India's largest real estate deal. Delhi-based developer BPTP Ltd, which was banking on overseas institutions to fund the acquisition of 94 acres of prime land at Noida for Rs 5,006 crore, has sought an extension to pay the first instalment of the money.
A police official said prima facie, it appears that the shuttering was hit by a tractor-trolley carrying construction material, which led to the incident but the cause is yet to be ascertained.
A slew of real estate companies, like DLF, Omaxe, BPTP and Avnija Properties (Dalmia Cement), and large corporations like telecom bigwig AT&T, Sterlite, Videocon, JSW Power, Hinduja's HTMT, Moser Baer Infrastructure, Ispat Industries Ltd and a Sam Pitroda-owned company are among the 25 companies whose applications will not be immediately processed by the Department of Telecommunications (DoT) for awarding mobile licences.
Mayawati recently appointed her brother Kumar as national vice president of the Bahujan Samaj Party.
