DLF maiden offer in Rs 500-550 price band

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

The IPO will debut on June 11 and could raise around Rs 9,625 crore, as against the earlier market estimate of Rs 13,600 crore.

Following various issues delaying the public float, the promoters have decided to dilute 10.27% of their stake, instead of earlier projection of 12.27% stake dilution.

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

Given the price band declared by the company, the company would raise Rs 9,625 crore at the top end and Rs 8,750 crore could be raised if the issue hits the market at the lower end of price brand. 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 the largest IPO as ONGC had raised Rs 10,500 crore through a follow-on offer.

DLF had recieved an approval from market regulator Sebi for its IPO on May 7, 2007. DLF got the regulator's nod a year after it filed the 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 the same year. The Delhi High Court cleared the IPO recently.

When asked about the pending complaints of the minority shareholders, the company's executive director Rajeev Talwar said all issues had been resolved.