Indian Real Estate companies were facing problem of finance from Global slowdown. There are needful for loan. They are unsuccessful to raise money from money from IPO. This is due to sacra city of bankers and funds for Indian Real Estate companies. Indian banks are unwilling to finance to this sector.
So Indian companies are start to raise money from Non Debenture Certificate (NDC). Interest of those loans are from 16%-24%. They are raising finance on such high interest rate. This is cause of pressure on profit margin of Indian Real Estate Companies. Even though this can increase make pressure on companies’ balance sheet. This may become cause of hike in real estate price in India.
Upcoming year will prove these moves of Indian Real Estate Companies are RIGHT or WRONG? Now this is our timing to think over that as an investor. What you think for Real Estate sector of India?, Is there time to buy to Real Estate shares?, Is it good for our portfolio to stay invested in real estate shares?, Are real estate companies are such positive on upcoming growth?. If the moves of Indian companies will successes, then there is big upward movement by cause in Indian stock market.
Upcoming future will give all answer of all questions. Till then I like to invite you for your opinion as an trader and investor.
(Note:This article is based on news ,which is broadcasting on one of leading financialnews