Jun 07

DLF Ltd IPO :: Are you in good hands?

Lately, there is lot of hype created around DLF IPO issue. The IPO was released this Monday and the issue price is overpriced as expected.

Company Overview:

DLF Universal Limited, originally registered as Delhi Leasing and Finance on 18th September, 1946, is a leading real estate developer in India. The company essentially focuses on residential, commercial and retail segments of the real estate industry.

The DLF Group has charted it next growth steps to retain its leadership position in India. Already a major player in locations across the country, including key metro cities and urban centres, DLF, with over Six decades of experience, is focusing on strengthening its lateral and vertical business drivers. These include development of innovative business strategies, strengthening its professional resources and driving market penetration with an ear-to-the-ground approach that is adaptive to local market needs.

Read more on their About Us page

Details of the IPO:

Issue period : Between June 11, 2007 and June 14, 2007
Issue size : 175,000,000 (10.27% diluted capital of the company)
Listing on : BSE and NSE
Face Value : Rs.2
Method : 100% book building
Issue Price : Rs.500 to Rs.550 (250 to 275 times F.V.)
Market Lot : 10 shares
Minimum : 10 shares
R.I. Cap : Rs.100,000 maximum

Most of the investment advisor’s suggest to apply. However, the issue is overpriced for short-term. Investors looking for long-term benefits can apply.

Update: The issue is over subscribed already in QIB segment. The retailer segment also would get oversubscribed so be choosy in investing small amounts.

What is your verdict?

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