In this paper we will discuss about
DLF IPO. It is now India's largest IPO. DLF is a real estate company which is based in the capital of India, New Delhi. DLF also made profit from the oversees investors.
In 2007, DLF Ltd., a real estate developer based in New Delhi, launched its first IPO to collect at most Rs 9,625 crores from public issue. The average share price ranged between Rs 500 to 550.
DLF offered 175 million shares to the public at a cost of Rs.2 each. DLF's aim was to enter into the list of top ten companies in India.
DLF wanted to spend 3500 crores out of that estimated gain, mentioned above, to purchase land. The rest might be used to pay the construction cost and repay the debt.
- Experts think that DLF IPO was able to encourage the other real estate companies to enter into the capital market.
- DLF's public issue is now the biggest IPO in India. Moreover, it is the 8th most valuable company in the country.
- DLF's IPO roadshow covered Singapore, Hong Kong and UK. The company also staged roadshows in some places beside US and some countries in the Europe.
- DLF received bids for almost 50.9 million shares from the small traders.
- According to the National Stock Exchanges' data, the company got bids for total 607 million shares.
- Almost 90% of the demands for DLF IPO had come from the global investors.