Domestic realty companies which are planning to tap the primary markets may not see

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a smooth sailing as the Dubai debt crisis is likely to undermine investor confidence in the sector.

As many as nine realty companies, including Emmar MGF, have filed their draft red herring prospectus (DRHP) with the market regulator Sebi aiming to raise about Rs 15,000 crore.

"It will not be surprising if some realty companies defer their share sale plan. The Dubai debt crisis will not give any positive signal to investors in realty companies and IPOs of companies like Emmar MGF will face huge challenge," SMC Capitals' equity head Jagannadham Thunuguntla said.

As per the DRHP filed with the Sebi, nine relators are planning to raise an estimated Rs 15,000 crore through the initial public offers (IPOs). This includes Emmar MGF's Rs 4,000 crore issue, followed by Sahara Prime City (Rs 3,400 crore), Lodha Developers (Rs 2,700 crore), BPTP (Rs 2,000 crore), and Godrej Properties (Rs 500 crore).

"The realty IPOs will find it tough to sail through. Although investor confidence in the secondary markets have revived in the past six months, the primary markets are yet to witness such revival," Unicon Financial chief executive Gajendra Nagpal said.

On Wednesday, the Dubai government-owned investment company Dubai World asked for a six-month delay on repaying its $ 59 billion debts.