The Hindu Business Line : DLF to raise Rs 12,250 cr

The Catalogue
Issue to open in February
To offer 17.5 crore equity shares of Rs 2 each through 100 per cent book building process.
To offload 10.1 pc equity.

New Delhi , Jan. 3

With the biggest IPO to hit the domestic bourses, the Delhi-based real estate player DLF will raise Rs 12,250 crore through its public issue, following the filing of its draft red herring prospectus on Wednesday.

The issue will open in the first half of February, a reliable source said. "DLF Ltd proposes to enter the capital market with a public issue of 17.5 crore equity shares of Rs 2 each through 100 per cent book-building process," the company said in a release.

The company could also raise Rs 14,435 crore through the IPO, if all the shares are issued at the upper end of the price band of Rs 825 per share. The price band the company is considering is Rs 700-825 per share, said the source.

With the issue of 17.5 crore shares, the company will offload 10.1 per cent of its equity.

The land bank of the company, it is learnt, has increased significantly to over 10,000 acre.

The company plans to halt most of its advertising for the time being and only publicise the IPO, with the overall advertising budget of Rs 35 crore-40 crore for the next one year.

DLF had withdrawn its prospectus from SEBI August last year due to differences with the minority shareholders regarding allotment of debentures. Minority shareholders had filed a complaint with SEBI alleging that they did not receive the letter of offer of the debentures issued by the company in December 2005. The company resolved the differences late last year.

Those foreign institutional investors who have prior approval from the RBI will be able to invest in the IPO. Foreign individuals will need approval from the apex bank for the same.

Kotak Mahindra Capital Co Ltd and DSP Merrill Lynch Ltd are the global co-ordinators and book running lead managers for the issue, according to the release.

Citigroup Capital Markets India Pvt Ltd, ICICI Securities Ltd, Lehman Brothers Securities Pvt Ltd, UBS Securities India Pvt Ltd and Deutsche Equities India Pvt Ltd are the book running lead managers. SBI Capital Market Ltd is the co-book running lead manager to the issue. Karvy Computershare Pvt Ltd is the registrar to the issue.

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