DLF issue IPO; land to be acquired in 62 cities

Mumbai, May 29 (UNI) Real estate major DLF Limited today came out with a public issue of 175,000,000 shares of Rs 2 each, having a price band of Rs 500-550 per share.

The issue will constitute 10.26 percent of the fully diluted post-issue capital of the company.

While around Rs 3,500 crore of the issue proceeds will be pumped in for acquisition of land in 62 cities across the country, Rs 3493.4 crore will be put in for the expenditure of existing projects and the remaining for loan prepayments, said DLF Vice chairman Rajiv Singh.

Sixty per cent of the issue has been alloted to qualified institutional buyers (QIBs),10 percent to non-institutional bidders and 30 percent to retail individual bidders.

DLF has also plans to foray into hospitality sector, special economic zones (SEZs), infrastructure and Insurance business, said Mr.Singh.

The company has tied-up with Hilton group and US-based prudential insurance and has kept an eye for more joint- ventures in domestic market.

''The company has a strong balance sheet and has a total asset strength of Rs 18,170.8 crore as on March 31'', Mr Singh said.

DLF presently handles residential projects in an area of 7 million square feet, while the commercial and retail project is being done in an area of 27 million square feet and 10 million squarefeet respectievely.

The company has land reserves of 10,255 acres with an estimated developable area of approximately 574 million square feet.

The issue will open for subscriptions on June 11 and will close by June 14.

UNI