The much-hyped DLF public offer was subscribed about 80% of its size at the end of the first day, with the institutional part of the IPO subscribed 1.5 times. Data available on the NSE website showed that compared to 17.5 crore shares on offer, there was demand for about 13.6 crore shares at the close of Monday’s bidding. At the Rs 500-550 per share price band, the company could mop up about Rs 9,600 crore.
Market sources said that the thinking on the part of the company and the merchant bankers was to price the issue at about Rs 525-535 per share and not at the upper end of the band, at Rs 550. Marketmen feel by pricing the IPO slightly lower than the upper end, the company would leave some scope for appreciation on listing.
While the DLF offer got a decent response in the official market, it got a lukewarm response in Gujarat’s grey market with operators and investors preferring to wait and watch. The per-share premium in the offer, which was quoted around Rs 45 when the issue was formally announced , has now fallen to a range of Rs 29-34 , amid thin volumes of trade in the grey markets.
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