To file for IPO `very soon'

Our Bureau

New Delhi, Nov. 14

DLF on Tuesday resolved the pending minority shareholders' issue, which clears the way for the company to file the draft red herring prospectus with the market regulator SEBI for its initial public offering.

In an extra-ordinary general body meeting, the company approved the revival/revalidation and issue of 81,983-two per cent unsecured redeemable debentures of Rs 100 each.

The debentures are optionally, fully or partly convertible at par or at premium to the shareholders in accordance with their entitlement.

Rewrite prospectus

The company will have to rewrite its prospectus accordingly, a process that it will initiate shortly and file for the IPO "very soon", said a source close to the development.

The IPO size may also be revised by the company, he said. The process of allotment of these 81,983 debentures will take about two weeks.

The company also approved that the debentures on issue and allotment and on being fully paid-up, be converted into equity shares in the ratio of 10 equity shares of Rs 10 each for every one debenture of Rs 100 each held by them.

Approves share split

The EGM also approved the split of shares so issued into five shares of Rs 2 each for every Rs 10 paid-up share.

A further bonus share issue of seven equity shares of Rs 2 each for every share of Rs 2 held after the conversion of the debentures into equity shares and subsequent splitting of shares was also approved.

The new shares so issued will rank pari-passu with existing shares of the company and carry the same benefits.

The Board of Directors had been advised that there were no lapses committed by the company in respect of the offer of debentures made to the shareholders in December 2005, but keeping the interest of the minority shareholders in mind and to maintain their goodwill, the board decided to revive the lapsed offer of debentures to the minority shareholders.

The move will benefit minority shareholders of DLF. The EGM was attended by around 55 shareholders and their representatives.

(This article was published in the Business Line print edition dated November 15, 2006)
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