Posts Tagged ‘affordable housing’

Points Discussed in Budget :)

  • Excise duty on silver rose to 10%
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  • Surcharge on domestic cos reduced to 7.5% from 10%..
  • Excise duty on oil rose to 10%.
  • Fiscal deficit will be at 5.5% in 10-11, at 4.8% in 11-12 and 4.1% in 12-13
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  • Revised income tax slabs 馃檪
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  • Net market borrowing for 2010-11 at Rs 3, 45,010..
  • Extended 1% interest subsidy scheme for affordable housing.
  • Rs 5400 cr of funds allocated for urban development..
  • Defense allocation rose to Rs 147344 cr.
  • Rs 48000 cr allocated for Bharat Nirman.
  • Farmer loans extended for 6 months to June 30th 2011.
  • Allocated Rs1.73 lakh cr for infrastructure..
  • Agriculture credit flow targets at Rs. 375000cr.
  • FDI worth $20.9 bn in April to Dec 2009.
  • Proposed Rs 16500 cr for PSU banks.
  • Challenge for a 9% growth, need to review stimulus.
  • Stay Tuned聽for More updates 馃檪

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please聽click here

    IPO News

    ipo news

    Astec Lifesciences IPO subscribed fully

    The Astec Lifesciences IPO closed for subscription on 4th November. It received a mild response on the last day and was subscribed 1.56聽times. The non-institutional investors’ portion got subscribed 3 times; retail segment was subscribed 2.36 times and QIB 0.61 times. The聽issue was of 75,00,000 equity shares of Rs 10 each for cash at a price of Rs 77-82 per equity share, aggregating Rs 57.75-61.50 crore. The聽company is engaged in the manufacture and sale of intermediates, active ingredients and formulations in the off patent鈥損roprietary聽category with a focus on agrochemical and pharmaceutical sector.

    路Rural Electrification Corp to divest 20% via FPO

    P Uma Shankar, CMD of REC (Rural Electrification Corporation) said the company would be filing a draft red herring prospectus (DRHP) with聽SEBI by mid-December 2009. The company will divest 20% via FPO (follow-on-public offering) including 15% fresh equity and 5% government聽stake dilution. The FPO of 17.17 crore shares will hit the market by February 2010 and the company will reserve 50% for QIBs, 15% for HNIs聽and 35% for retail investors.

    路Intrasoft Technologies files IPO papers with SEBI

    Intrasoft Technologies, owner of 123greetings.com has filed a draft red herring prospectus (DRHP) with the Securities & Exchange Board of聽India (SEBI) for a public issue of 37,00,000 equity shares of Rs 10 each. The issue will constitute 25.12% of the post issue paid up capital of the聽company. The company intends to utilize the issue proceeds for branding & promotion; purchasing a corporate office at Kolkata and聽investment in technology infrastructure. Out of proceeds, it is planning to use over Rs 35 crore for above three purposes. For the period聽ended March 31, 2009, the company reported total income of Rs 10.52 crore and profit after tax of Rs 5.2 crore.

    路GPL eyes IPO by end-Dec, to strongly focus on affordable housing

    Godrej group company, Godrej Properties Limited (GPL), plans to hit the market with its IPO by end-December. A DRHP has been filed with聽SEBI for the purpose. The company proposes to issue fresh capital to the tune of around 13 per cent of its present capital. The proceeds of聽the issue will be used to fuel Godrej Properties’ expansion. The company’s thrust would be on affordable housing which will be its main聽growth-driver and in the future the revenue-mix of the company would be 80 per cent from residential housing (primarily affordable) and聽the balance from commercial realty.

    路Coal India engages fund managers for IPO

    State-owned Coal India Ltd has engaged large fund managers for its coming IPO which is likely to hit the market within a year. CIL, which had聽received Navratna status last year, was scheduled to get listed in the bourses within a three year period. Apart from this, it also planned to聽offer stock options to its over four lakh employees besides considering a proposal to issue shares to its former employees. Turning to coal聽imports, he said that coal import was increasing by 20 per cent annually. Import of coal was necessary since CIL could not meet the entire聽demand supply gap of coal.

    路PSU divestment back on govt agenda

    Home Minister P Chidambaram announced on 5th November that all profitable PSU’s are to give 10% equity to the public sector. The

    government has made it mandatory for all listed profitable PSUs to disinvest 10 % to public sector. All unlisted PSUs which do not have any聽accumulated losses and positive networth and have made profits would be listed. Hitherto, the policy was to put the sale proceeds in a聽National Investment Fund (NIF) and use only its dividends for social security schemes. But given the tight fiscal situation, a special聽dispensation is being made for the three-year period 2009-12. The corpus comprising deposits from April 2009 till March 2012 will now be聽available in full for investment as capital expenditure in specific social sector schemes determined by Planning Commission and聽Department of Expenditure.

    Buying your own home is more affordable now :)

    Buying House

    Buying your own home is more affordable now than it has been in the last four years.

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    The average price of a house is around 4.5 times the buyers鈥 average annual income, against 4.6 times in 2005.
    In 2007, the affordability factor had increased to 5.1% due to a sharp rise in real estate prices.

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    However, with the prices of new houses dropping by around 30%, the number of years鈥 income required to buy a house has come down to 4.5 times.

    Developers have also realized the need to introduce affordable housing and are reducing the size of dwellings and omitting amenities like Italian marble and modular kitchens, which drive up costs, in a bid to cater to the huge untapped demand.

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    Housing finance major HDFC calculates the 鈥榓ffordability factor鈥 based on the data of its home loan borrowers.
    At 4.5 times of annual income, the average EMI would be around 50% of a buyer鈥檚 income.

    In the home loan market, it is considered within the affordable range.

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    With interest rates also softening in the last six months, demand has got a further boost. 馃檪

    Improved affordability seems to be translating into better sales.
    In this quarter, housing finance firms have seen a good increase in demand compared to the previous one, ie January to March 2009.

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    With affordability factor in buying houses improving, demand for home loans have also increased.

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