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Our Bureau

New Delhi , April 20

Moving a step closer to launching the largest-ever IPO in the country, DLF shareholders at an extraordinary general meeting today approved proposals pertaining to share split, bonus issue, private placement of 3.5 crore shares as well as the mega public offer which is likely to mop up over Rs 10,500 crore.

"We will be filing the draft prospectus, will go ahead with the pre-IPO proposals (share split, bonus issue, private placement), and determine the pricing of shares for the upcoming IPO in the next few weeks," DLF Chief Financial Officer, Mr Ramesh Sanka said at a briefing on Thursday.

IPO in June

The company plans to increase its presence from 18 cities to 35 cities in the next two years. It plans to offer 20 crore shares through the IPO slated to hit the market in June. The shareholding of DLF promoter Mr K.P. Singh and his family would come down to 87-88 per cent post-IPO, from 99.5 per cent at present.

Bonus offer

The company plans to sub-divide each equity share of Rs 10 into five equity shares of Rs 2 each, while the authorised share capital is proposed to increase from the existing Rs 40 crore to Rs 500 crore. The EGM has also approved a bonus offer under which the equity shareholder as on the record date would be entitled to seven new equity shares as bonus shares for each existing equity share held by him.

DLF also proposes to launch an Employees Stock Option Scheme for grant of options of up to 35 lakh equity shares for employees of the company and its subsidiaries.

The proceeds of the IPO would be utilised for projects in hand and to fund future expansion plans. The company is also in talks with well-known hotel chains to develop hotels both in business and budget categories, for which DLF has started acquiring land.

DLF Group clocked sales of Rs 2,000 crore for the financial year ended March 31, 2006, with profit before tax of Rs 700 crore.

The company has appointed DSP Merrill Lynch and Kotak as the global co-ordinators for the upcoming IPO, while UBS, JM Morgan Stanley, Enam, ICICI Securities and Citibank will act as the book running lead managers.

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