DLF IPO ends with 3.47 times subscription

Gets total bids for 60.70 crore shares

DLF IPO ended with 3.47 times subscription. The IPO receievd total bids for 60.70 crore shares from total issue size of 17.50 crore shares.

The total bids in the Qualified Institutional Buyers (QIBs) category were 53.54 crore shares. Within this category, the Foreign Institutional Investors bid for 48.54 crore shares, the Domestic Financial Institutions bid for 3.51 crore shares and the Mutual Funds bid 1.45 crore shares.

The Non Institutional Investors bid for 1.98 crore shares, out of 1.74 crore shares allotted for this category.

The retail individual investors bid for 5.09 crore shares. From this, 4.75 crore shares were bid at cut off price and 33.47 lakh shares were price bids.

The employees bid for 7.86 lakh shares from total 10 lakh shares allotted for this category.

The IPO had a price band of Rs. 500 - 550.

The fresh issue of 17.5 crore equity shares is aimed at raising Rs 8750 crore to Rs 9625 crore depending on the price band of Rs 500-550 per share, to fund acquisition of land reserves, and development and construction of various real estate projects. Part of the proceeds would be utilised for repayment of the debt on its books.

The Gurgaon-based DLF group is one of the leading real estate developers in India. It has been focused on the National Capital Region (NCR; i.e. Delhi and adjacent areas like Gurgaon). The group has developed over 220 million square feet (msf) of saleable area across segments like residential (apartments, row houses and plots), commercial building and retail properties.

It is one of the first developers to anticipate the need for townships on the outskirts of the fast growing cities and is generally credited with the growth of Gurgaon through the development of an integrated township spread over 3,000 acres.

The company has signed a memorandum of understanding with Nakheel LLC, UAE to jointly develop two townships in India, each spread over 20,000 acre.

Apart from this, the company has already obtained the approval for several special economic zone (SEZ) projects (including the government's approval for two information technology-specific SEZs in Gurgaon, and one SEZ each in Hyderabad, Pune and Chennai). It is also in the process of finalising approvals for several other SEZs, which would cover an aggregate area of 26,100 acre, including a 20,000-acre multi-product SEZ in Gurgaon, a 2,500-acre SEZ in Ludhiana, a 1,100-acre SEZ in Amritsar and a 3,000-acre SEZ in Ambala.

The DLF group has made significant progress in pursuing new business opportunities in terms of multiplex cinemas (through its subsidiary DT Cinemas), development of a chain of luxury and business hotels (thorough a joint venture formed with the Hilton group), foray into infrastructure projects like roads, bridges and airports (through joint venture with Laing O'Rourke), insurance (a joint venture with Prudential, US for life insurance), and engineering and design services (a joint venture with WSP).

DLF's consolidated net profit before extra-ordinary items and tax stood at Rs 732.40 crore in the year ended 31 March 2007 (FY 2007), on revenue of Rs 1734.70 crore. FY 2007 EPS is Rs 3.30