Mumbai: The Indian real estate sector is set for a giant leap with Parsvnath Developers' upcoming initial public offer further opening the doors for foreign investors to participate in the sector's growth story.
Parsvnath's proposed public issue, which would open for subscriptions next week, is estimated to raise about Rs 1,000 crore for the company and will mark the first ever pure-play real estate IPO opportunity for overseas investors through foreign institutional investment route.
FIIs' equity market investment in the real estate sector has been limited to secondary markets so far, as there have been no pure-play realty IPOs in the country over the recent past.
Unitech Ltd, in which FIIs own a 6.26 per cent stake, is among the few listed pure-play realty firms, although the investors' interest has soared ahead significantly in the companies with even small exposure to the sector on the back of a sharp rise in real estate prices over the past couple of years.
Investment banking sources said that foreign investors are keenly watching the IPO segment developments in the sector, while anticipating robust growth prospects ahead in this space.
Parsvnath IPO could herald a new era for the sector, as a successful listing with good response from FIIs might further intensify the interest of overseas investors in future public issues in this space, they added.
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