After IVR Prime, Puravankara Projects is the second real estate company to be listed at a discount on the Stock Exchange. Against the issue price of Rs.400, the share was listed at Rs.310 on Thursday and closed at Rs.364.75, or a discount of 8.81%. 84 lakh shares were traded over the counter, generating Rs.31.66 crore.

The ill-timed IPO from Puravankara was forced to extend its tenure by 5 days when it did not receive an adequate response to its subscription offer, and was forced to lower its price band to Rs.400-450 from Rs.500-Rs.525 for a share of Rs. 5.

The correction elicited a subscription of 1.17 times the offer. The Realty Index on the BSE slipped by 1.28% last week, even as the stock markets steadied their performance.

Real estate analysts feel the IPO was over-rated, and real estate companies would not be making as much profit as they would have last year.

Estimating lower profits, investors are not willing to invest in real estate companies. Since June, there has been a spate of public offers from real estate companies, led by DLF.

Omaxe, Prime and Puravankara were listed on the bourses in August. Of these, only Omaxe is hovering around its issue price. IVR Prime last week traded at Rs.381 – 31% from its issue price.

On the other hand, HDIL, Obit Corporation and DLF are performing better – at 7.81% 308% and 11.89% over their issue price respectively.

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