DLF IPO closes oversubscribed

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

Billionaire K.P. Singh-promoted DLF has fixed the price band for the issue at Rs. 500-550 per share.

The issue constituted 10.27 percent of the fully diluted post-issue capital of the company.

During the first hour of its last day of offer, the issue was oversubscribed 2.36 times receiving 413.1 million bids. Towards the end of the day, it was reported that the mega-issue was oversubscribed 3.75 times with shares reserved for institutional investors under Qualified Institutional Buyers (QIB) being oversubscribed nearly 3.17 times.

Data available with the National Stock Exchange (NSE) showed that foreign institutional investors (FIIs) have placed bids for 198.7 million, out of the 104.44 million shares reserved for the QIBs.

The company had reserved 10 million shares for its employees. However, the employees opted for only half of the shares reserved for them.

DLF is expected to raise up to Rs. 9,625 crore ($2.34 billion) from the issue making it among the 10 largest firms on the bourses with a value of Rs. 93,700 crore (approx. $23 billion) on the upper band.

DLF is expected to join Futures and Options (F&O) trading on its listing.

DLF is raising funds to help buy land and build houses as the real estate industry is estimated to rise seven-fold by 2015.

Its IPO is the largest issue till date exceeding the Rs. 8620 crore ($2.1 billion) raised by Cairn India Ltd. in an initial offer last December. Earlier, the Indian government raised Rs. 10690 crore ($2.3 billion) in March 2004 from a follow-on sale of its shares in Oil & Natural Gas Corporation (ONGC). The ONGC issue was, however, an offer for sale.

• 1
• 2