The Hindu Business Line : DLF fixes issue price at Rs 525; mops Rs 9,187.5 cr

New Delhi June 15 Real estate major DLF today fixed the issue price for its initial public offering at Rs 525 per share, mopping Rs 9,187.5 crore from the recently-concluded mega issue.

The 100-per cent book built IPO had been launched with a price band of Rs 500 to Rs 550 per share. The issue was subscribed about 3.47 times at the top end of the price band. At Rs 550 per share, the qualified institutional buyers (QIB) portion was subscribed 5.12 times. The retail portion was, however, only 0.97 times subscribed while the non - institutional was subscribed 1.14 times.

"The company could have comfortably priced the issue at the top end of the price band. However, the company chose to price the IPO at Rs 525 per share as a gesture of their appreciation to the tremendous response and keeping in mind the long-term relationship with investors.

At the issue price, the offering size is Rs 9,187.5 crore (about $2.25 billion)," a company release said here.

The IPO comprised 175 million shares, of which 1 million shares were reserved for employees resulting in a net issue of 174 million shares. Sixty per cent of the net issue was offered to QIBs, 10 per cent was offered to Non Institutional investors (including High Networth Individuals) and 30 per cent to retail investors.

The DLF statement said that the offering received "overwhelming" participation from across the globe. Nearly 90 per cent of institutional demand came from global institutional investors, with almost equal contribution from US, Europe and Asia.

"We greatly appreciate this overwhelming response from both the domestic and global investor community and thank them for the confidence reposed in DLF. We welcome the large number of shareholders to the DLF family and we will do our very best to meet their expectations," Mr KP Singh, Chairman, DLF Limited said.

The global coordinators to the issue were Kotak Investment Banking and DSP Merrill Lynch. Lehman Brothers was the Senior Book Running Lead Manager to the issue. The Book Running Lead Manager to the issue were Citi, Deutsche, ICICI Securities Primary Dealership and UBS. SBI Capital was the Co-Book Running Lead Manger to the issue.

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