The Hindu Business Line : DLF expects to get listed in early July

Realty impact
Real estate sector not overheated, says Mr K.P Singh, Chairman.
Prices will come down once supply surpasses demand.
High quality realty developers would continue to command a good price.

Mr K.P. Singh, Chairman, DLF

New Delhi June 17 DLF, which mopped up Rs 9,187 crore from its just-concluded IPO, expects to get listed on the BSE and the NSE in the first week of July.

"The IPO has received a massive response from long-term quality foreign investors who understand the real estate business," Mr K.P. Singh, Chairman, told Business Line.

"These investors recognise real estate to be a sunrise industry and believe that the current strong GDP growth will further fuel the consumer's aspirations for a better home, office, entertainment area, boosting growth in the sector."

Mr Singh also said that contrary to perception, the real estate sector was not overheated, and that "property prices will find their place."

Last week, Finance Minister Mr P. Chidambaram, in response to the industrial growth figures, had said that the Government was keen to constrain demand in overheated sectors like real estate and housing.

However, Mr Singh sought to play down the statement saying that his comments were being misread.

"The statement is being misread. Anything can get overheated and it is the job of the regulator to cool it. Real estate is a different ball game and growth of the economy is pushing demand for real estate, and the only way to `cool' the sector is to increase the supply and build more homes. The prices will come down automatically once supply surpasses demand."

Mr Singh added that high quality realty developers would continue to command a good price for property and land, while the others will not be able to do so.

"It will be a total fallacy to think of curbing demand in a democracy. With GDP growth, people's aspiration for a better quality of life will only increase."

DLF had fixed the issue price at Rs 525 a share.

The 100 per cent book built IPO, comprising 175 million shares, was launched with a price band of Rs 500-550 a share.

It was subscribed about 2.75 times at the top end of the price band.

At Rs 550 a share, the portion for qualified institutional buyers was subscribed 3.94 times.

The retail portion was 0.96 times subscribed, while the non-institutional was subscribed 1.08 times.

The offering received nearly 590,000 bids.

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