DLF revives IPO plans, to raise over $2 billion

Mumbai: Leading Delhi-based property developer DLF Ltd has revived plans for an Initial Public Offering (IPO). The group, controlled by billionaire businessman Kushal Pal Singh, filed a revised prospectus with the Securities and Exchange Board of India (SEBI) on Wednesday.

Analysts expect the company to raise between $2 billion and $2.5 billion through the IPO, which is slightly smaller than the one proposed a few months ago. DLF had in August planned to off-load 12.8 per cent of its equity in the markets, but backed out following differences with minority shareholders.

This time, it hopes to sell 10.2 per cent of its shares through the IPO. "The company proposes to enter the capital market with a public issue of 17.5 crore equity shares of Rs2 each through 100 per cent book building process," DLF said in its statement. The company has appointed Kotak Mahindra Capital and DSP Merrill Lynch as global co-ordinators and book runninglead managers for the issue.

Citigroup Capital Markets India, ICICI Securities,Lehman Brothers Securities, UBS Securities and Deutsche Equities India are the book running lead mangers, while SBI Capital Market is the co-book running lead manager for the issue.

Several top Indian realty developers have been raising funds through the markets - both through IPOs, and from the Alternative Investment Market at the London Stock Exchange. They include Parsvnath Developers, Sobha Developers, Hiranandani group, K. Rahejas, and Unitech.

The DLF IPO is expected to over-shadow all the mega issues of recent times, including the Cairn India offer, and the National Thermal Power Corporation and Tata Consultancy IPOs.

The 60-year-old DLF has launched a major expansion plan, which includes building hotels, infrastructure projects and special economic zones. DLF has to its credit - both built and under construction - 130-million sq ft of built-up space. This includes 20 million sq ft of office space and over 40-million sq ft of retail space.

Over the next 10 years, the group plans to develop another 300-million sq ft of space in India. DLF has built up land reserves of over 1,300 acres, representing 100 million sq ft of developed area. It is also acquiring nearly 3,000 acres of land all over the country.

The company plans to invest between Rs30,000 crores and Rs40,000 crores over the next 10 years by putting up about six 'multi-product' SEZs, which would include integrated townships.