INSUBCONTINENT EXCLUSIVE:
late last evening approved a Rs 25,000 crore fund to aid complete over 1,600 stalled housing projects.
This also includes projects that have
been declared non-performing assets (NPA) or admitted for insolvency proceedings
The move is likely to help 4.59 lakh housing units across the country.
Cheering this announcement, the BSE Realty index opened nearly 3 per
Most of the real estate players were also trading in the green with Sobha gaining 5 per cent in the early trade
It was followed by Indiabulls Real Estate (up 4.94 per cent), Prestige (up 3.48 per cent), Godrej Properties (up 2.74 per cent), DLF (up
1.75 per cent), and Phoenix (up 1.67 per cent).
Among other players, Arihant Foundation and Housing, Ansal Housing, Peninsula Land gained
between 9-20 per cent in the early trade
Ganesh Housing Corporation, Marathon Nextgen Realty and Puravankara were also up over 5 per cent.
Niranjan Hiranandani, President
Cements, Shiva Cement, Prism Johnson and NCL Industries gained between 2-5 per cent, while the benchmark BSE Sensex was up 178 points, or
0.44 per cent, at 40,648 at around 9.25 am (IST).
Ajay Bodke, CEO, PMS, Prabhudas Lilladher added that real estate developers like DLF,
Godrej, Oberoi, Sobha, Purvankara, Kolte-Patil, Brigade etc, as well as EPC companies deriving substantial revenues from real estate like
while Ahluwalia Contracts was trading 4.29 per cent higher at Rs 313.40.
Finance Minister Nirmala Sitharaman said the Alternative Investment
Fund (AIF) will comprise Rs 10,000 crore coming from the government and the remaining being provided by state insurer LIC and the country's
largest lender SBI.
The minister also said several sovereign funds have shown interest and may join the scheme at a later stage.
Sameer
Kalra, Founder, Target Investing added that the move is positive to improve sentiment among the real estate buyers and developers
It will also provide relief to the developer financiers as the project completion gets done, the repayment of the dues against the project
It would reduce inventory that has been adding on and has put pressure on price of the units along with denting the cashflow of the
Repco Home, PNB Housing, LIC Housing Finance and DHFL also advanced up to 11 per cent after the announcement made by the government.
