DLF IPO Allotment Details

India's largest real estate development company(1), has received an overwhelming response to its 100% book built Initial Public Offering (IPO). The IPO, the largest to date, garnered demand of nearly Rs. 30,000 crores (approx. US$ 7.4 bn).
The IPO comprised 175 million shares, out of which 1 million shares were reserved for Employees ("Employee Reservation") resulting in a Net Issue of 174 million shares. 60% of the Net Issue was offered to Qualified Institutional Buyers (QIBs), 10% was offered to Non Institutional investors (including High Networth Individuals) and 30% was offered to Retail Investors.
The offering was launched with a price band of Rs. 500 to Rs. 550 per share. The issue was subscribed approximately 2.75 times at the top end of the price band (Rs. 550 per share). At Rs. 550 per share, the QIB portion was subscribed 3.94 times. The retail portion was 0.96 times subscribed and the non – institutional was subscribed 1.08 times. The offering received nearly 590,000 bids.
The company could have comfortably priced the issue at the top end of the price band. However, the company chose to price the IPO at Rs. 525 per share as a gesture of their appreciation to the tremendous response and keeping in mind the long-term relationship with investors. At the issue price, the offering size is Rs. 9, 187.5 Crores (approximately US$ 2.25 billion).
The offering received overwhelming participation from across the globe. Nearly 90% of institutional demand came from global institutional investors with almost equal contribution from US, Europe & Asia. Majority of the demand was from long-only funds.

Commenting on the success of the IPO, Mr. K.P. Singh, Chairman, DLF Limited said, "We greatly appreciate this overwhelming response from both the domestic and global investor community and thank them for the confidence reposed in DLF. We welcome the large number of shareholders to the DLF family and we will do our very best to meet their expectations".
Mr. Rajiv Singh, Vice Chairman, DLF Limited said, "This IPO will help us in accelerating our growth and maintaining our leadership position in India's real estate sector thereby enhancing shareholder value".
The Global Coordinators to the issue were Kotak Investment Banking and DSP Merrill Lynch. Lehman Brothers was the Senior Book Running Lead Manager to the issue. The Book Running Lead Manager to the issue were Citi, Deutsche, ICICI Securities Primary Dealership and UBS. SBI Capital was the Co-Book Running Lead Manger to the issue