DLF, which built much of the New Delhi suburb and outsourcing centre of Gurgaon, has re-launched its initial public offering after a stock market meltdown in May.
HONG KONG: The order book for India's biggest ever IPO, a $2.4 billion issue by developer DLF Ltd., is fully covered just days into a two-week global road show, a source close to the deal said on Friday.
Another source said earlier that several large orders of between $200 million and $500 million had been made, with strong interest from Indian institutional investors.
Fund managers who met company executives in Singapore and Hong Kong this week were also enthusiastic, he said. DLF, which built much of the New Delhi suburb and outsourcing centre of Gurgaon, has re-launched its initial public offering after a stock market meltdown in May last year and some disputes with minor shareholders stalled the deal.
The IPO comes at a time when many fund managers and analysts expect a property price correction in India of as much as 40 percent, after a surge in building activity doubled land prices in major cities in the last two years.
DLF Vice Chairman Rajiv Singh said last week that there was no property price bubble and that his firm's earnings in the next year would be a pleasant surprise. DLF is selling 175 million new shares, equal to 10.27 percent of the enlarged company, at 500 to 550 rupees each.
Some $864 million of the IPO's proceeds has been earmarked for land purchases.The offer price values DLF at over $23 billion at the upper end of the band and places it above India's top private bank ICICI Bank valued at $20.6 billion,Wipro Ltd valued at $19.5 billion and top lender State Bank of India which is worth $17.1 billion.
DLF's road show, which runs to June 12, will also take in the United States and Europe. Kotak Mahindra and DSP Merrill Lynch are the lead arrangers for the issue, along with Citigroup Deutsche Bank, ICICI Securities, Lehman Brothers, UBS and SBI Capital Markets.
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