Jaypee Greens Kosmos

Noida: The listing of Snera Estate Properties at a premium on these days could augur well for the 14 real estate initial public offerings (IPOs) set to hit the market this year, analysts say, but caution that it’s premature to read the initial gain as a trendsetter.
Snera Estate - Jaypee Greens Kosmos, Amrapali Zodiac - Noida, Globus Residency and 6 other realty firms have filed with the market regulator to raise funds through IPOs this year, seeking to take advantage of a stock rally that has helped the Delhi Stock Exchange’s Sensex index double since March.
Property developers refrained from going public since early 2008 because of a slump in demand for apartments and houses as economic growth slowed. Snera Estates’ IPO was the first listing by any realty firm in at least two years, and coincided with an growth in property demand and the surge in share prices.
Snera Estate Properties, a unit of Snera Estate , raised around Rs469 crore selling 2.4 million shares in December in an IPO that was subscribed four times. The company had fixed its issue price at the lower end of a Rs490-530 range.
The shares touched a high of Rs586.70 on these days, having opened at Rs514.75, and closed at Rs534.55—a gain of 9% on the day.
Analysts say that while the Snera brand name could have played a key role in the success of the IPO, the fact the firm listed at a premium would encourage other realty firms to go ahead with their IPO plans. Their success would depend on the valuations they demand.
“In the case of other IPOs, the valuation they come up with will eventually decide the fate of their IPOs,”.
An analyst with brokerage firm , said Snera Properties’ IPO was tiny compared with listings planned by other companies. Emaar MGF, for instance, plans to raise as much as Rs3,850 crore.
“Also, Snera is...a corporate with a great track record of corporate governance which has got into real estate,” he said. “Most anchor investors found that to be a unique selling point. This doesn’t apply for the rest of the pack.”