Over a 1000 minority shareholders of real estate major DLF today became multi-millionaires depending on their shareholding in the company, after the company resolved differences with them over the allotment of debentures. In essence, each minority shareholder will now get 440 shares for every single share held.This also means that the companies mega-IPO issue, earlier estimated to raise around Rs 13,600 crore, is back on track. The company is restarting the process for a filing a new draft red herring prospectus, which is expected to take a few weeks time from now. Sources in the know said the issue size may not change from its earlier plan, although some minor tweaking may be possible.According to a company release, shareholders at the extra-ordinary general meeting (EGM) held today, approved the issue of 81,983 shares or 2% of unsecured redeemable debentures of Rs 100 each to minority shareholders. The shareholders are now being offered debentures on the same terms and conditions as previously offered, which means they would not lose out on the IPO gains. The members approved that the debentures, on issue, allotment and once fully paid-up, be converted into equity shares in the ratio of 10 equity shares of Rs 10 each for every one debenture of Rs 100 each held by minority shareholders. The meeting also approved splitting the issued shares into 5 shares of Rs 2 each for every Rs 10 paid up share. The shareholders also approved a bonus share issue of seven equity shares of Rs 2 each for every share of Rs 2 held after the conversion of the debentures into equity shares and subsequent splitting of shares. The minority shareholders' issue had led to the collapse of DLF's proposed IPO issue earlier this August. The company had not been able to get the "final observation" from the Securities and Exchange Board of India (Sebi) within three months of filing the prospectus. Consequently, the company withdrew the issue. DLF's minority shareholders had complained to Sebi that they were denied participation in the company's rights issue in September 2005. The Rs 35 crore rights issue of debentures had raised the promoters' stake in DLF to 99.5%.
