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Jayanta Mallick
Somasroy Chakraborty

Kolkata June 8 Centurion Bank of Punjab is providing loan to DLF group employees to participate in the issue of DLF Ltd. Mr A.S. Minocha, Chairman of DLF Commercial Developers Ltd, said the bank offered to provide loans to the DLF employees for subscribing in the IPO against shares.

One million shares are reserved for the employees of DLF out of a total offering of 175 million equity shares of Rs 2 each at a price band fixed between Rs 500 and Rs 550.

Only a section of the 2,600 employees, including 2,100 professionals of DLF group comprising DLF Ltd and its subsidiaries, will be eligible for the preferential allotment of equity shares from the company's upcoming IPO, according to senior officials of the company.

Permanent employees, including non-promoter directors of 63 odd group outfits, who were on the rolls on or before May 31, 2007 and present in the country on that date are eligible for bidding or applying.

A senior company official told Business Line that "our pool of skilled employees justifies incentive for their loyalty. There is a strong demand from within the organisation for equity," the official added. The 60-year-old DLF group has so far not offered any ESOPs.

According to the set terms, bids received from the employees at or above the issue price (to be determined through book building) will be grouped together to determine the total demand in this category.

If the aggregate demand in this category is less than reserved number, the un-subscribed portion would go to retail pool.

If it is equal to one million shares at or above the issue price, full allocation would be made. If the aggregate demand in this category is greater than one million shares at or above the issue price, the allocation shall be made on a proportionate basis up to minimum of 10 equity shares and in multiples of one share thereafter. However, in case of an over-subscription in the employee category, the maximum allotment to any employee will be capped at up to one lakh shares.

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