Realty shares surge as govt eases FDI norms in construction
S&P BSE Realty index rose 3.44% to 1,530.56 points
Mumbai: Shares of realty sector companies rose on Thursday, apparently bouyed by the easing of foreign investment rules aimed at making it easier for investors to enter the Indian real estate market.
The new rules, first proposed in the Union Budget, include reducing the built-up area requirement for foreign direct investment (FDI) in construction projects to 20,000 square metres from 50,000 square metres.
The minimum capital requirement was halved to $5 million from $10 million.
“The investor will be permitted to exit on completion of the project or after three years from the date of final investment, subject to development of trunk infrastructure," the government said in a statement on Wednesday.
Mahindra Lifespace Developers Ltd rose 3.38% to ₹ 506.55, D B Realty Ltd rose 2.16% to ₹ 63.85, Housing Development Infrastructure Ltd rose 5.99% to ₹ 81.35, Indiabulls Real Estate Ltd rose 4.07% to ₹ 69.10, Unitech Ltd rose 8.43% to ₹ 19.30, Anant Raj Ltd rose 1.72% to ₹ 53.15, Godrej Properties Ltd rose 0.58% to ₹ 241.55. S&P BSE Realty index rose 3.44% to 1,530.56 points.
DLF Ltd rose 4.87% to ₹ 123.90 ahead of an appeal hearing later on Thursday by the Securities Appellate Tribunal. The company has filed an appeal against an order made by Securities and Exchange Board of India (Sebi) which sought interim relief for redeeming funds locked in mutual funds and other instruments.
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