The DLF initial public offer (IPO), which is expected to hit the market in a month’s time, has already created millionaires out of a few 1,000 minority shareholders of the company.

These shareholders, it may be recalled, had gone to court last year to claim their share of the expanded equity capital of the company. Back of the envelope calculations suggest that even if one were to take the lowest price (according to Sebi’s guidelines, the issue cannot be priced less than Rs 500 a share), all minority shareholders who had 50 shares originally and have now been allotted 22,000 shares each, will be worth over crores of rupees.

The company has issued 22,000 shares to all minority shareholders who were holding 50 shares while 44,000 shares have been issued to those with 100 shares, top company officials told ET. Minority shareholders in the company represent close to 0.5% of the total shareholding. The promoter, KP Singh holds the remaining 99.5% stake in the company.

DLF’s minority shareholders had complained to Sebi that they were denied participation in the company’s rights issue in September 2005, when the DLF first filed the draft prospectus for going public last year. The Rs 35 crore rights issue of debentures in September 2005 had raised the promoters’ stake in DLF to 99.5%.

The real estate giant, which recently received approval from market regulator — Sebi — for its IPO, is expecting to raise an estimated Rs 13,600 crore from the market. The approval, came nearly a year after it first filed the draft prospectus.

The company had filed a renewed prospectus in January this year after its first attempt came to naught due to certain regulatory objections over minority shareholders’ complaints against the company. It had filed its first prospectus in May 2006, which it had to withdraw in August of the same year.

DLF proposes to enter the capital market with a public issue of 17.5 crore equity shares of Rs 2 each through 100% book-building process. The post-issue dilution of the proposed issue would be over 10%, bringing down the promoter’s holding by this amount.

Given that the company plans to raise the same amount of about Rs 13,600 crore in its second attempt too, but with lesser shares being offered through the IPO, reflects that the company’s valuation has increased over the past year. The company had last year proposed to offer 20.2 crore equity shares.