Wednesday, July 12, 2006
DLF IPO delayed
The much-awaited Rs 13,500-crore initial public offering (IPO) of real estate major DLF is not likely to hit the market in mid-July, as the company had earlier envisaged.
The company now expects it not before September. It is still awaiting Sebi’s clearance for the IPO. The company ascribes the delay to a complaint by minority shareholders, which made Sebi refer the issue to the ministry of company affairs (MCA).
The price band of the issue is to be decided after the Sebi nod. However, the company says there will be no dilution in the number of shares or money sought to be raised. DLF is also in the final stages of a tieup with an international hotel major. This is supposed to be the Hilton, even though the company shields away from naming the hotel group.
Speaking to this newspaper, a top official of DLF said that the company is now awaiting the green signal from the market regulator Sebi before it can decide about the timing and the pricing of the issue.
However, it is being estimated that now the issue will hit the market only in September or October. The official added that August is not considered a good month for an IPO like this, which has a global scope, since European investors are not very active during this time.
Nevertheless, he made it clear, that every decision will be subject to the Sebi clearance for the IPO. The DLF official said that the complaint in question against the company is the one registered by the minority shareholders of the company on non-receipt of Letter of Offer for DLF’s rights issue of debenture. This had been opened for subscription on December 29, 2005, and closed on January 18, 2006.
The company, having clarified its stance in this matter, had already said that investigation agencies will have the final word on the issue. According to DLF, there will be no dilution in the number of shares, numbering 22 crores, or the quantum of money that it seeks to raise, which is Rs 13,500 crores. These things will be as per the red herring draft prospectus filed with the Sebi towards the end of May.
Meanwhile, Midas Investor group, an investor protection group, had also raised several apprehensions regarding the forthcoming IPO of DLF, in terms of the draft prospectus as not being in tune with the Sebi guidelines.
The company now expects it not before September. It is still awaiting Sebi’s clearance for the IPO. The company ascribes the delay to a complaint by minority shareholders, which made Sebi refer the issue to the ministry of company affairs (MCA).
The price band of the issue is to be decided after the Sebi nod. However, the company says there will be no dilution in the number of shares or money sought to be raised. DLF is also in the final stages of a tieup with an international hotel major. This is supposed to be the Hilton, even though the company shields away from naming the hotel group.
Speaking to this newspaper, a top official of DLF said that the company is now awaiting the green signal from the market regulator Sebi before it can decide about the timing and the pricing of the issue.
However, it is being estimated that now the issue will hit the market only in September or October. The official added that August is not considered a good month for an IPO like this, which has a global scope, since European investors are not very active during this time.
Nevertheless, he made it clear, that every decision will be subject to the Sebi clearance for the IPO. The DLF official said that the complaint in question against the company is the one registered by the minority shareholders of the company on non-receipt of Letter of Offer for DLF’s rights issue of debenture. This had been opened for subscription on December 29, 2005, and closed on January 18, 2006.
The company, having clarified its stance in this matter, had already said that investigation agencies will have the final word on the issue. According to DLF, there will be no dilution in the number of shares, numbering 22 crores, or the quantum of money that it seeks to raise, which is Rs 13,500 crores. These things will be as per the red herring draft prospectus filed with the Sebi towards the end of May.
Meanwhile, Midas Investor group, an investor protection group, had also raised several apprehensions regarding the forthcoming IPO of DLF, in terms of the draft prospectus as not being in tune with the Sebi guidelines.
# posted by mashup @ 10:08 PM 
