DLF roadshow ahead of offer to begin in the last week of May

DLF roadshow ahead of offer to begin in the last week of May
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First Published: Fri, May 18 2007. 09 46 AM IST
Updated: Fri, May 18 2007. 09 46 AM IST
DLF Ltd, one of India’s largest real-estate developers, will begin its much anticipated pre-initial public offering (IPO) roadshow during the last week of May.
The IPO of DLF’s shares is slated for the second week of June, said investment bankers involved in the offer. The company plans to sell 175 million shares.
The roadshow will also provide a more recent snapshot of DLF’s financial performance, through March 2007. The company’s most recent filing with the Securities and Exchange Board of India was submitted in March and covered results through January.
DLF will submit a copy of the latest prospectus to the Registrar of Companies before the roadshow begins, said the bankers, who did not wish to be identified.
DLF plans to hold roadshows in Delhi, Mumbai, Ahmedabad and Chennai, as well as overseas markets such as Singapore and Hong Kong, part of a 16-city list targeted for the share issue.
Mumbai and Ahmedabad are expected to be key stops on the roadshow.
“Gujarat and Maharastra have the maximum retail investors. We will have the roadshow in two cities in Gujarat —Ahmedabad and another city,” said one banker associated with the issue.
Roadshows are used by companies to gauge how much investors are willing to pay for its shares. The response to the roadshow will then help DLF and the banks underwriting the company’s issue to fix a price band for the public offering.
Kotak Mahindra Capital Co. and DSP Merrill Lynch Ltd are global coordinators and lead managers for the issue.
DLF declined to comment, citing regulatory guidelines that prohibit it from talking about the IPO.
The company first filed to sell shares to the public a year ago but had to call off the attempt after minority shareholders protested over the allocation of shares in a rights issue, a bonus plan and a subsequent stock split.
This was for shares they held in DLF, which was previously listed until 2003 and was forced to delist after promoters violated stock market regulations by upping their holdings to more than 90%.
In January, DLF filed for the new offer after appeasing some of these shareholders.
DLF, owned by billionaire Kush Pal Singh and his family, built its real-estate empire by developing large tracts of Gurgaon, one of the Capital’s satellite towns, where land values have risen from Rs650 per sq. ft to as much as Rs6,500 per sq. ft over the last five years.
Close to New Delhi’s domestic and international airports, Gurgaon now houses row after row of large shopping malls that cater to densely packed apartment complexes and office buildings.
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First Published: Fri, May 18 2007. 09 46 AM IST
More Topics: Money Matters | Real Estate |