Land Bank Dot Com

By Ramesh Akkineni
Gaurav Dalmia in an interview in Business Standard
Is the primary market dead for real estate developers?

There are two issues here. One, 75 per cent of all IPOs are trading below their issue price. Not that these companies are not doing well. But these IPOs were over-priced. So, the general perception is down. Two, in real estate, there is this esoteric phenomenon called land bank which is equated with profitability. This is a bizarre correlation. It is just land which you can develop, take the risk and possibly make money. I won’t be surprised if real estate companies fail to live up to the expectations of investors. Welcome back to the dotcom days, though it is not so bad. These are the sins of a typical bull run. I have seen it in other sectors also.

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