Over 500 DLF minority investors lose bonanza

Over 500 minority shareholders of realty major DLF have missed out on a once-in-a-lifetime opportunity to become 'crorepatis' overnight.

According to information available, only about 280 investors of the 1,100 minority shareholders of the Delhi-based DLF applied for the company's bonanza debenture-to-bonus share offer.

The offer, made by the company after last November's extraordinary general meeting, would have resulted in each investor receiving a minimum of 31,328 shares of Rs 2 each, which at Rs 500 "" the lower price band of DLF's public issue "" would be worth over Rs 1.56 crore.

The possible reason for the low level of application could be that these shareholders have lost their share certificates (DLF was listed on the Bombay Stock Exchange from 1974 to 1983 and on the Delhi Stock Exchange from 1974 to 2003).

"All minority shareholders were allowed to participate in the debenture issue and the consequent conversion, bonus issue and the split in face value. As per the information we have, only 280 investors participated in the offer, despite the fact that it was a bonanza offer," said Raja Roy Chaudhary, a minority investor who tracked the issue.

A company spokesperson when contacted said: "All issues relating to minority investors is a closed chapter. But, I can tell you that several investors participated in the offer."

DLF's IPO prospectus showed that 437 shareholders did not participate in the debentures, while another 51 investors lost out as their share certificates were lying with the company since 1981 and hence presumed as inactive.

The prospectus also shows another 219 investors as inactive as these investors have not encashed their dividends for the financial year ended March 31, 2005.

These three categories of investors have lost out a total of 12,23,12,000 shares valued at a whopping Rs 6,115 crore at the lower IPO price band of Rs 500 per share.

"This highlights one thing: lack of investor awareness in our country," says Chaudhary.