Tuesday, May 8, 2007

DLF IPO gets Sebi nod, to hit market in a month

Four months after DLF Ltd filed a revised draft to raise around Rs 13,600 crore from the primary market, the Securities and Exchange Board of India (Sebi) today cleared the company’s initial public offer (IPO) for offloading 10.27 per cent of its shares.

The issue, which would be book-built, could hit the market in four weeks, though the exact timing would be decided after company executives met their merchant bankers later this week.

The price band was likely to be finalised in two weeks. The price band will be around Rs 825 if the company is looking to raise Rs 13,600 crore . However the price band will be around Rs 600 if the company wishes to raise more than Rs 10,000 crore as stated in the draft to SEBI.

Experts said the timing of the issue would not be affected by the ongoing decline in the real estate sector. Between January 2007 and mid-April, 19 listed real estate firms saw their peak market capitalisation erode by over 20 per cent. However, this trend seems to have been arrested and some stocks are staging minor recoveries.

Read more in The Business Standard article.

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