Mumbai: Real estate majors DLF Ltd and Unitech Ltd have deferred plans to list their real estate investment trusts (REIT) on the Singapore Stock Exchange amidst global market volatility.
A meltdown on the domestic market early this week affected realty sector the most as inflationary fears, rising input costs and concerns of hike in the interest rate dampened investor sentiment.
Reports quoting DLF officials said the realty firm had decided to hold back REIT listing plans till market conditions improve.
Earlier, in March, rival property developer Unitech had also put its plan for a REIT IPO on hold.
DLF had planned to list DLF assets, its real estate investment trust, in Singapore through an initial public offer, to raise about $1.5 billion.
The IPO, originally planned for the first quarter of 2008, was shelved then due to volatile market conditions. Unitech had also put its plan for a REIT IPO on hold in March this year.
DLF hoped to revive the issue plan after Indiabulls Real Estate raised about S$262.5 million from its REIT offering earlier this month.
Market analysts now expect DLF to revive its REIT IPO plan once market conditions improve.
Indiabulls Properties Investment Trust, however, has been trading below its offer price of S$1 per unit.
DLF Ltd, the country's biggest property developer, was the second-worst performing stock on the BSE on Friday. DLF dropped 2.9 per cent to Rs497.45 at the close of trading while benchmark Sensitive Index gained 0.4 per cent. Unitech was down one per cent.
Rising market uncertainty had also forced asset management company UTI Mutual Fund, to postpone plans for an IPO – the first by an AMC in India.
The draft prospectus was filed with market regulator Securities and Exchange Board of India (SEBI) in January and the offer was expected to be launched by end of fiscal 2007-08.
Marketmen now expect UTI to go for private placement of a part of the equity capital for price discovery before the IPO.
UTI MF is the third largest fund house in terms of assets under management (AUM) after Reliance and ICICI Prudential.