DLF awaits Sebi nod for reviving its mega IPO plan

Real estate major DLF Universal Ltd. is planning to revive its proposal for its mega initial public offer. DLF said it is awaiting clearance from market regulator Sebi for the IPO involving sale of over 202 million shares, the country's biggest so far.

Billionaire Kushal Pal Singh-controlled DLF's issue plans were held up following shareholder complaints and it will now have to wait till regulators decide on the complaint.

New Delhi-based DLF plans to file offer documents for the IPO with Sebi next month and expects to be ready with the issue by early December.

DLF withdrew its IPO last month after Sebi dealyed clearance to it following complaints by a group of minority investors claiming they missed out on the chance to increase their stake when DLF sold convertible bonds without notifying all shareholders.

Sebi forwarded the complaint to the ministry of company affairs and the IPO lapsed during the prolonged investigation.

Kushal Pal Singh-Singh family and the holding companies they control own 98.66 per cent of DLF, according to documents filed with Sebi.

DLF proposed to sell 202 million shares of which 187.1 million were new stock. It also planned to sell 17 million more shares, bringing the total to 12.77 per cent stake. The sale proceeds may exceed the Rs10,500 crore ($2.3 billion) raised by the government from the sale of a 10 per cent stake in Oil & Natural Gas Corp, the nation's biggest explorer, in March 2004.

Real estate broker Cushman & Wakefield has valued the 228 million square feet of land owned by the company in 64 locations at between Rs 96,500 crore and Rs107,000 crore. DLF properties

A Merrill Lynch report last year said commercial and residential construction in India, Asia's fourth-largest economy, will surge to $50 billion by 2010 from $12 billion in 2005.