DLF to Offer 10% of its Paid-Up Capital in IPO

June 8, 2007	(1 votes, average: 5 out of 5)  Loading ...
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Indian real estate major, DLF Ltd, has sent its executives across the globe with a pitch to woo more and more foreign investors: Ride India’s property boom through the nation’s largest initial public offering (IPO).

DLF is offering 10% of the company in an IPO that at the top end of the range could raise up to $2.36 billion (Rs 9,625 crore).

Shares will be priced between Rs 500 and Rs 550, and be put for sale from Monday through Thursday. Trading on India’s National Stock Exchange and Bombay Stock Exchange will begin in the first week of July.

The offer will be roughly twice the size of India’s biggest IPO to date, says the data showcased by Thomson Financial. Undoubtedly, India’s economy is making rapid strides and so is its real estate.

Indian realty is believed to gain the value worth $90 billion in 2015 as compared to $12 billion in 2005. In addition, DLF’s offer has generated great attention and support.

However, a few industry watchers are of view that investors in DLF may find ownership to be a bumpy ride. Since there have been concerns regarding corporate governance and DLF’s treatment of minority shareholders in the past, it gives grounds for doubt to the experts.

DLF adjusted its prospectus for the IPO after the India’s market regulator SEBI tightened rules surrounding valuation of land banks and disclosure of Asset Township. After the new rules and regulations released, the company incorporated the requirements to get its IPO approved.

To ensure satisfactory supporters for its IPO, DLF’s size in a fast flourishing real estate market. The stock is also likely to become a major holding of much India-dedicated funds.
The IPO is taking place at a time when already-listed Indian property companies have been experiencing tough times as a result of higher interest rates and government measures to cool the property market.

DLF IPO is coming when already listed Indian real estate companies have been witnessing hard times as a result of higher interest rates and government stringent norms to cool the red-hot property market.

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