New Delhi: Midway through what is India’s largest share sale, investors, led mostly by institutional buyers, offered to buy all the 175 million shares being sold by DLF Ltd, the large real estate company, and then some.
Institutional investors, or so called “qualified institutional buyers”, which include banks, mutual funds and overseas buyers oversubscribed the shares on offer by 2.08 times. So far, they have bid for 217 million shares against 104 million shares offered to them.
Non-institutional investors have, however, bid for only 452,040 shares so far, out of the 17.4 million shares reserved for them. Retail individual investors, who typically wait until the last day of such offers, have subscribed to 10% of shares reserved for them, or about 5.3 million shares out of 52 million shares. Some 76,780 shares were bid for by employees who have one million shares reserved for them.
People familiar with the grey market pricing, who did not wish to be identified because it’s not a legal market, said the response to the offer from retail investors remains lukewarm, with the premium falling to Rs16 per share from about Rs28 on Monday. This may imply that some investors in these markets believe the DLF initial public offering is unlikely to get completely subscribed in the retail portion.
DLF’s much anticipated offering opened for subscription Monday and is expected to close on 14 June. It is offering shares in a price band of Rs500-550.?DLF?expects?to raise Rs9,625 crore at the higher end of the price band of Rs550.
Sunil Raghu in Ahmedabad contributed to the story.