To re-file draft red herring prospectus "very soon''

Deepak Goel

New Delhi, Oct. 12

DLF Universal Ltd is planning to come out with a bigger IPO than the estimated Rs 13,500 crore it had proposed earlier, when it re-files with the SEBI "very soon''. This is due to a "sizable'' increase in its land bank.

The company owned 228 million sq ft of land at 64 locations in the country at the time of filing its draft red herring prospectus (DRHP) in May this year.

This has increased "sizeably" since then, according to Mr Saurabh Chawla, Senior Vice-President, Finance, DLF. "Our land acquisition has grown sizeably and the IPO size will reflect the ground realities taking place in the company," he said. He, however, declined to give the exact increase in the possession of land by the company.

EPS Calculation

There may also be a small correction in the percentage dilution of the promoter's stake from the earlier reported 12.77 per cent. "The minimum stipulation for dilution by SEBI is 10 per cent.

Including the green shoe option and stock options for employees, the dilution will come to about 11-11.5 per cent," said Mr Chawla. Justifying the calculation of EPS (earnings per share) by the company in the DRHP it filed earlier, Mr Chawla said that valuations on the share price is done looking forward and not based on the past. It had been earlier reported that a pool of investors had alleged that DLF's EPS amounted to Rs 1.32 against Rs 12.84 mentioned in the company's DRHP.

On the issue of re-filing its prospectus, the company maintains that it would happen "very soon,'' after the resolution of the minority shareholders issue that is pending with the Ministry of Company Affairs.

The company has said that it is willing to settle the issue with the minority shareholders across the table within the ambit of law.

(This article was published in the Business Line print edition dated October 13, 2006)
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