It’s known that real estate firms seeking to raise capital through the primary market are having a tough time convincing investors to put money into their public issues. Grapevine has it that brokers, who conduct the roadshows of some of these issues, find it difficult to even fill seats during the event, with fund managers dropping out.
In one such instance some time ago, it’s rumoured that a real estate company’s officials, who had gone to an AMC to pitch for their public isssue, were made to wait for at least a couple of hours. Now, it may come as no surprise that some realty companies are offering properties at a “discounted” price to some investors to participate in the public issue.
Source: Economic Times, Chennai Edition