Mukesh Ambani Vs KP SIngh

Finally DLF has managed to come up with the biggest IPO in the country. But, investors are in a dilemma whether it will be worth investing in the stock. We at DP would like to inform our visitors about a rumor that has been doing rounds for sometime regarding the DLF IPO and Reliance Industries.

There have been speculations in the market that Reliance is trying to create hurdles to stop DLF going to the market. Something similar that happened with Cairn Energy.

During the Cairn energy IPO, most of the brokers told investors not to invest in Cairn. They said that the issue will not give returns. Brokerage houses came up with reports that the valuations are higher. And, market experts said this all happened thanks to Reliance's attempt to spoil the issue.

If you are wondering why would Reliance do it? Here is a simple answer. Cairn is a competitor to Reliance in the energy space. Similarly, DLF is a direct competitor for Reliance in their real estate play.

DLF has their SEZ in Gurgaon and Haryana. This is in direct conflict with Reliance's ambitious plans for their 25,000 acres SEZ in the same state.

Also, if the DLF's issue happens, Mukesh Ambani will no longer remain the wealthiest man in India. DLF's KP Singh will replace him.

We would like our readers to watch out for some events that might occur.

Markets may perform negatively till the issue is over (around June 14).

Brokerage houses saying that DLF is expensive issue.

Brokers advising clients not to invest in the issue.

DLF may open much below the issue price.

Since few days everyone in market and business journalists are talking about markets to perform badly and that has started to happen.

This also means newspaper flashing news regarding how stock markets are not performing well. Don't be surprised to see articles that say that market is heading for a correction of 15% - 20%.