SEBI’s Order Adds To DLF’s Woos
Real estate major
“The company is already under a huge debt. On top of it, the order will put DLF at a disadvantage because the company will not just be able to raise funds from the market but also no bank will be willing to grant loans as they would need collaterals,” said
He added that the company will not have any access to Real Estate Investments Trusts (REITs), which will further put the realty major at a distinct disadvantage as compared to its peers. “SEBI has already issued
Analysts noted that in a capital intensive market such as real estate, raising funds is extremely important especially in a scenario where other players have not been restrained from raising funds from the markets. “DLF is already selling its non-core assets to pay off its debts. They would have expected to raise funds through FIIs, which is not possible anymore,” stated another equity market expert on the condition of anonymity.
However, Sekhar averred that the market regulator’s order will not have any ramification on the sector. In the real estate sector, he has recommended investors to invest in South based real estate companies such as Shobha Developers, Prestige Builders or the North based Aashiyana Real Estate.
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