Underwhelming Debut for Indiabulls Properties Investment Trust on Singapore Exchange
June 11th Marked the Trust's Lackluster Entry
Indiabulls Properties Investment Trust's debut on the Singapore Exchange on June 11th was met with an unenthusiastic response from investors. The day began on a disappointing note and ended even worse, with the stock failing to breach its issue price of S$1.
Market Performance Highlights
- Lowest Point: The stock plummeted to as low as 0.88 cents during the trading day.
- Closing Price: It closed a dismal 10% below the issue price of S$1, as reported by Supriya Verma from Mumbai.
Initial Public Offering (IPO) Details
- Issue Price: Shares were sold at S$1 each, representing the lower end of the proposed price range.
- Delayed Sale: The sale was postponed by a day, as per a statement released on June 6.
- Intended Proceeds: The division had initially aimed to raise up to S$388.3 million by selling shares at S$1-1.10 per piece.
Key Challenges Faced by Indiabulls Properties
- FY10E Distribution Yields: The trust had to proceed with distribution yields of 9-10% for FY10E.
- Market Factors:
- Spiraling property prices
- Higher interest rates over the past 6 years
- Impending volatility in global markets
Context: Impact on Other Indian Developers
- Postponed Offerings: Other prominent developers, such as DLF and Unitech, have delayed their international offerings due to the aforementioned market challenges.
- Significance of Indiabulls' Debut: Despite the challenges, Indiabulls Properties Investment Trust has become the first international offering by an Indian developer this year.