DLF IPO Date 2007

DLF IPO Prospectus
Industry Construction and Contracting - Real Estate
DLF Group, DLF Shopping Mall, 3rd Floor, Arjun Marg, DLF City Phase-I Gurgaon-122002
CEO Mr.T C Goyal

www.dlf.in

DLF IPO date 11/06/2007 to 14/06/2007
17,50,00,000 Equity Shares
DLF IPO Price Band Rs.500/- to Rs.550/-
Registrar To The Issue :Karvy Computershare Pvt.

DLF IPO Latest News

Macquarie Research says

DLF – What we like… and what we think is risky
We like DLF for its larger geographical presence (in 31 cities) and for its land
bank in the high-priced locations of Mumbai and New Delhi, though very small.
We think the new, recently-announced JVs are strategic for its execution
capabilities – Hilton for its hotel business and Laing O’Rourke for infrastructure.


What we think is risky: DLF development plans for next three years are
aggressive and we think its product mix is not in sync with overall market
demand. DLF focuses more on relatively smaller commercial and retail markets
instead of the larger residential segment. Even in residential, DLF focuses only
on super luxury apartments which have a small market. Also, ownership of 200m
sqf of total saleable area is not very clear. Finally, with 50% of the total land bank
in Gurgaon, DLF becomes susceptible to any adverse development in Gurgaon


There are substantial changes in the newly filed prospectus relative to DLF’s
previously filed prospectus of May 2006. Among the notable changes: both land
bank and debt levels have doubled and there are no land valuations in the offer
document (unlike May 2006, when 220m sqf was valued at US$19.2bn). The
macroenvironment has also undergone a change; equity markets have
increased by 15%, interest rates by 150bp and property prices by ~30–40%.

Real estate player DLF Ltd has fixed price band of Rs 500-550 per equity share for its forthcoming initial public offering. The issue opens on June 11 and closes on June 14. The company registered its prospectus with the Registrar of Companies on May 24. The company had registered its draft prospectus in January for 17.5 crore equity shares of Rs 2 each. The company thus proposes to mop up Rs 8,750 crore at the lower end of the price band and Rs 9,625 crore at the upper end. DLF's public issue will fall shy of Oil and Natural Gas Corporation's public issue in 2004 of around Rs 10,500 crore, the country's largest issue by far, by around Rs 875 crore even if all the shares are subscribed at the upper end of the price band.

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