Real estate could be the lynchpin for the equity markets and a failure of a large IPO could start a correction in the market.
Mr. Deepak Parekh, Chairman-HDFC Bank, warned, "If a large real estate IPO fails, it could have a serious repercussion on the market."
Mr. Parekh also noted that many of the recent IPOs have been overpriced and the markets are looking expensive.
Additionally, he said, "Companies raising money need to leave money on the table for investors."
Indian realtors have recently shown a trend to raise money through IPOs. Some notable companies include:
- Emaar MGF Land
- Lodha Developers
- Sahara Prime City
- Ambience Ltd
- DB Realty
These companies are looking to raise over twelve thousand five hundred crore rupees collectively.