Facing Down The Odds
October 18, 2014 2 Comments
There is little Kushal Pal Singh hasn’t seen. He built the city of Gurgaon out of nothingness. He also saw it begin to crumble under its own weight.
He almost sold DLF for Rs 26 lakh, but later also saw the value of his shareholding in it climb to Rs1,87,920 crore. Now, it’s declined to just Rs14,701 crore.
In 2007, he was celebrated for bringing India’s biggest IPO.Seven years later, he stands condemned by Sebi, for failing to disclose material information in that very offer. He has also seen both friends and foes occupy high places.
He is among the first who had the vision of a large-sized modern building that is as good as any in developed countries. Now, cash flow questions are being asked about many of his ongoing property projects.
Consistent with the title of his autobiography ‘Whatever the Odds’, his ride is neither smooth nor straightforward.
When KP Singh ventured into Gurgaon in the late seventies, no one would have imagined what it would become over the next few decades. Good fortune and intent and perseverance all played a part. Read more of this post
Invest in their apartments, and you will get rich. But invest in their shares and you will be poorer. Unlike in other sectors, values of shares of listed real estate companies do not reflect the growing value of their products. Sample this: Investments made in shares of real estate companies like Delhi-based Unitech and DLF, Mumbai-based Indiabulls Real Estate or Bangalore-based Purvankara in 2008 would have crashed to half or to a fifth of their value by now whereas in the same period, returns from investments made in homes built by the same companies would have risen anywhere between 50% and 150% or more. If one had bought an apartment in any Gurgaon-based apartment building of DLF — India’s biggest builder — in 2008, the investment would have, by now, appreciated 60-175%. Had the same money been used to purchase DLF’s shares the same year, that investment would have eroded to just 20%. Investors of Unitech, Indiabulls and other real estate firms would have a similar story to tell. 
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