HDIL, DB Realty to benefit from Court order on FSI:Anand Rathi

MUMBAI: Anand Rathi is of the view that the Bombay High Court dismissing the state government’s move to increase the Floor Space Index from 1 to 1.33 in suburban Mumbai will be beneficial to realty players like HDIL and D B Realty.

“We believe the TDR market would strengthen from a price perspective in the near term as was the vice-versa case after the GR issued by the government in Apr ’08.

We maintain our view that TDR prices are a function of construction and the end price at which a product is sold. Hence, given the prospects of a better monsoon and higher prices, we maintain our view that TDR prices would be stable in the medium term: between Rs 2400 and Rs 2800 per square feet.

HDIL and D B Realty would benefit from such ruling, which could lead to a near term rise in TDR prices. We expect them to sell, respectively, 5.1m and 2.5m sq ft of TDR in FY11,” the report said.

Shares of HDIL surged 5.14 per cent on the NSE to Rs 231.20, up Rs 11.30. It touched a high of Rs 234 on the index.

DB Realty shares jumped 3.20 per cent on the NSE to Rs 405.20. It touched a high of Rs 424 in early trade.