DLF's $3 Billion IPO Draft Prospectus Filed

The controversial IPO of DLF India is finally set to happen. We were the first to expose DLF on the web and later SEBI and Ministry of Commerce took up the issue which was resolved just in Dec-06. From the fresh draft prospectus, some of the key things to be taken into consideration are as follows.

• Issue size is now pegged at Rs 13,500 crores. [Earlier filing 10,500 crores]
• Number of shares offered via Book Building - 17.5 crore shares. [Earlier offering 20.2 crore shares]
• Price band Rs 700 to Rs 850.
• ENAM and J M Morgan Stanley pulled out of the issue due to HIGHER pricing.
  
• From the above we can infer that DLF promoters are offering lesser number of shares and raising higher amount. The shady part of this is DLF this time is not pulling in international property evaluator Cushman & Wakefield to value their land bank.
  
• DLF has a land bank of 10,255 acres. [Earlier 4,256 acres] DLF still owes Rs 5,537 crores to be paid to various land owners.
  
• DLF will venture into Hotel industry in JV with Hilton Hotels. Hilton will hold 24% stake in the venture
• Post-IPO promoters stake will be reduced to 87.5%.
• DLFs secured loan size has also doubled.

Tags:DLF , Realty India, India Properties , IPO India