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DLF IPO
Saturday, June 2, 2007
Real estate giant DLF on Thursday announced a price band of Rs 500-550 per share for its Initial Public Offer through which it could raise a maximum of Rs 9,625 crore, as against earlier estimates of up to Rs 13,600 crore. "We have fixed the price band between Rs 500-550.
The issue will open on June 11 and close on June 14," a company spokesperson said. K P Singh-owned DLF proposes to enter the capital market with a public issue of 17.5 crore equity shares of Rs 2 each through 100 per cent book building process.
The post-issue dilution of the proposed issue would be over 10 per cent. The company would raise Rs 9,625 crore at the top end of the price band and Rs 8,750 crore at the lower end. The proceeds of the issue would be deployed to meet construction cost, land acquisition and repayment of debt. DLF's public issue would still be largest IPO as ONGC had raised Rs 10,500 crore through follow-on-offer, a company official said.
The company had received approval from market regulator SEBI for its Initial Public Offer on May 7. The approval, which paved the way for the company's plan to tap the capital market, came nearly a year after it first filed the draft prospectus.
DLF had filed a renewed prospectus in January this year after its first attempt came to nothing 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 the same year.
Grey market demand for DLF IPO suggests a soft landing?
If the grey market activities are any indication, Delhi-based developer DLF Ltd's initial public offer (IPO), the largest domestic stock offer, is in for a soft landing.
On Thursday, DLF announced a price band of Rs500-550 for IPO of 175 million shares, which will hit the market on 11 June and close on 14 June.
At this price band, the issue could garner between Rs8,750 crore and Rs9,650 crore.
In the grey market for IPOs in Ahmedabad, the stock has been trading at a premium of Rs20-40 on the eventual issue price over the last few days. On Thursday, after the price band was announced, the premium on the issue price remained unchanged in the grey market.
DLF to rank among top 10 m-cap scrips
Post-listing, real estate major DLF will find a place among the top-10 companies in terms of market capitalisation.
The Delhi-based company's total enterprise value stands at Rs 85,221 crore on the lower side of the price band of Rs 500 a share on the total equity capital of Rs 340.88 crore of Rs 2 paid-up equity share.
The company announced a price band of Rs 500-550 a share for its upcoming mega initial public offer (IPO) of Rs 9,625 crore.
On the higher side, DLF's current enterprise value stands at Rs 93,743 crore. DLF will occupy the eighth position in terms of market capitalisation ranking, after Reliance Communications (Rs 1,03,110 crore) and before ICICI Bank (Rs 82,119 crore).
The company's enterprise value of Rs 85,221 crore constitutes 50 per cent of the total market capitalisation of real estate stocks listed on the Bombay Stock Exchange (BSE). It is almost 100 per cent of the total market value of real estate stocks.
The real estate sector will cross the market capitalisation of Rs 1,70,000 crore after the DLF listing. The sector will be among the top-ten sectors after telecommunication, oil exploration and power and ahead of pharmaceuticals, steel and engineering sectors. Unitech with a market capitalisation of Rs 44,403 crore tops the list of the construction sector.
Source :- IPO blog
Investors with long term origin can apply as we expect no major gains on listing
The issue will open on June 11 and close on June 14," a company spokesperson said. K P Singh-owned DLF proposes to enter the capital market with a public issue of 17.5 crore equity shares of Rs 2 each through 100 per cent book building process.
The post-issue dilution of the proposed issue would be over 10 per cent. The company would raise Rs 9,625 crore at the top end of the price band and Rs 8,750 crore at the lower end. The proceeds of the issue would be deployed to meet construction cost, land acquisition and repayment of debt. DLF's public issue would still be largest IPO as ONGC had raised Rs 10,500 crore through follow-on-offer, a company official said.
The company had received approval from market regulator SEBI for its Initial Public Offer on May 7. The approval, which paved the way for the company's plan to tap the capital market, came nearly a year after it first filed the draft prospectus.
DLF had filed a renewed prospectus in January this year after its first attempt came to nothing 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 the same year.
Grey market demand for DLF IPO suggests a soft landing?
If the grey market activities are any indication, Delhi-based developer DLF Ltd's initial public offer (IPO), the largest domestic stock offer, is in for a soft landing.
On Thursday, DLF announced a price band of Rs500-550 for IPO of 175 million shares, which will hit the market on 11 June and close on 14 June.
At this price band, the issue could garner between Rs8,750 crore and Rs9,650 crore.
In the grey market for IPOs in Ahmedabad, the stock has been trading at a premium of Rs20-40 on the eventual issue price over the last few days. On Thursday, after the price band was announced, the premium on the issue price remained unchanged in the grey market.
DLF to rank among top 10 m-cap scrips
Post-listing, real estate major DLF will find a place among the top-10 companies in terms of market capitalisation.
The Delhi-based company's total enterprise value stands at Rs 85,221 crore on the lower side of the price band of Rs 500 a share on the total equity capital of Rs 340.88 crore of Rs 2 paid-up equity share.
The company announced a price band of Rs 500-550 a share for its upcoming mega initial public offer (IPO) of Rs 9,625 crore.
On the higher side, DLF's current enterprise value stands at Rs 93,743 crore. DLF will occupy the eighth position in terms of market capitalisation ranking, after Reliance Communications (Rs 1,03,110 crore) and before ICICI Bank (Rs 82,119 crore).
The company's enterprise value of Rs 85,221 crore constitutes 50 per cent of the total market capitalisation of real estate stocks listed on the Bombay Stock Exchange (BSE). It is almost 100 per cent of the total market value of real estate stocks.
The real estate sector will cross the market capitalisation of Rs 1,70,000 crore after the DLF listing. The sector will be among the top-ten sectors after telecommunication, oil exploration and power and ahead of pharmaceuticals, steel and engineering sectors. Unitech with a market capitalisation of Rs 44,403 crore tops the list of the construction sector.
Source :- IPO blog
Investors with long term origin can apply as we expect no major gains on listing
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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.
