DLF fixes float band at Rs 500-550

Real estate major DLF announced a price band of Rs 500-550 a share for its upcoming initial public offering (IPO).

K P Singh-promoted DLF will tap the primary market with a public issue of 17.5 crore equity shares of Rs 2 each through a 100 per cent book-building process.

The issue would raise around Rs 9,625 crore as against the earlier estimate of Rs 13,600 crore. The promoters have decided to dilute 10.27 per cent of their stake, as against 12.27 per cent decided earlier, on acount of a delay in the public float.

"We have fixed the price band between Rs 500 and Rs 550. The issue will open on June 11 and close on June 14," a company spokesperson said.

Going by the price band declared, the company would raise Rs 9,625 crore at the top end and Rs 8,750 crore at the lower end of the price brand.

The proceeds of the issue would be deployed by the company to meet its costs of construction, land acquisition and repayment of debt.

DLF's public issue would still be the largest IPO, as ONGC had raised Rs 10,500 crore through a follow-on offer. The company received the approval from market regulator Sebi for its IPO on May 7.

DLF filed its first prospectus in May 2006, which it had to withdraw in August, due to certain regulatory objections over complaints of minority shareholders against the company. It had filed a renewed prospectus in January this year. The Delhi High Court cleared the IPO recently.

On the pending complaints of the minority shareholders, the company's Executive Director Rajeev Talwar said all issues had been resolved.