IIPM Admission

Wednesday, April 25, 2007

The giant bear hug!


Besides DLF, there is still a significant amount of money expected to be raised through real estate IPOs this year. Quoting industry figures, Madhur Mittal, JMD, Triveni Infrastructure Development Company spoke exclusively to B&E, “Real estate companies are to raise Rs.16,000 crore in 2007 through IPOs... number of real estate companies seeking IPOs this year has also doubled to around 150.”

In the past year, the Indian real estate sector has seen many a fortune being built. So much so that four of the seven new Indian entrants in the Forbes Billionaire List, 2006 are from the real estate sector alone. But there was a heightened concentration risk, as RBI was of the opinion that too much of bank lending is going towards the real estate sector. As disclosed by one of the highest ranking RBI officials directly to B&E, the Government was also overtly concerned about “too much of money chasing too few assets,” which leads to creation of asset bubble.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2007

IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

No comments: