DLF gets Sebi nod for Rs 13,600cr IPO

Real estate giant DLF has received approval from Securities & Exchange Board of India (Sebi) for its initial public offering  (IPO), which is expected to raise a record Rs 13,600 crore.

"We have received Sebi's clearance for the IPO," a company official said.

The approval, which will pave the way for the company's plan to tap the capital market, comes nearly a year after it first filed a revised draft prospectus.

The company had filed a renewed prospectus in January this year after its first attempt came to nought 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.

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. The post-issue dilution would be over 10% of the equity capital of DLF.

"The company could raise more than or equal to Rs 13,600 crore," a company official had said in January. The fund would be deployed to meet construction cost, land acquisition and repayment of debt.

When asked when the issue would open, the company official said: "We are on the job." Merchant bankers, however, said it would take at least a month as the issue size is big.

DLF's plans to raise about Rs 13,600 crore in its second attempt, but with lesser shares being offered through the IPO, reflects the company's increased valuation over last year.

The company had, last year, proposed to offer 20.2 crore equity shares, but the prospectus containing that offer was withdrawn.