DLF plans $2 billion maiden float

NDTV PROFIT EXCLUSIVE

If you thought Reliance and ONGC were the only companies with the clout and brand to raise thousands of crores from Indian stock markets, then get ready for India's biggest IPO. DLF, one of India's largest construction companies, is planning to raise almost $2 billion from Indian stock markets.

DLF boss KP Singh is making sure that his initial public offer breaks all existing records of raising money from Indian stock markets. Just weeks after being named in the Forbes list of billionaires, Singh's DLF is now ready with its IPO plans.

These involve raising a record $1.5 bn to $2 bn, close to 8,000 to 10,000 crore through its IPO. The issue will hit markets this year, in April or May.

While it is not known whether the entire money will be raised in one go, or in stages, it seems the company will go public with a mix of public offering and private placement.

DLF has already developed 3,500 acres of land in Gurgaon in North India, but now wants to go national. The money will be used to fund expansion.

It is unclear whether all four companies of the group, DLF Universal Limited, DLF Commercial Developers, DLF Retail Developers and DLF Home Developers, will raise the money as one entity, or if they will eventually be separate listed companies.

DLF, in which the Singhs hold 99.5 per cent, will offload less than 10 per cent stake in the company. DLF's turnover is between Rs 600 cr and Rs 2,000 cr depending on the accounting methods used. And industry sources tell NDTV this will make DLF one of the largest Indian companies with a market capitalisation of over $12 bn or about 50,000 crore.

Goldman Sachs is one of the investment bankers to the issue and when this issue hits markets, there will be not just domestic interest but also huge foreign interest, as investors now want a piece of India's real estate market. If the DLF IPO manages to raise up to $2 bn it will be the largest ever fresh offering by any company.

DLF's wants to be the largest construction company in the country, developing 100,000 acres of land in the country in the next 5 years. It wants to be an infrastructure company with a focus on lucrative special economic zones.