DLF IPO opens on June 11

Bangalore, Jun 5 (UNI) DLF Limited, the largest real estate development company, is entering the capital market with an initial public issue of 175,000,000 equity shares of Rs two each through a 100 per cent book building process.

The issue opens on June 11 and closes on June 14. The price band has been fixed at Rs 500 to Rs 550 per equity share.

Talking to newsmen here today, DLF Limited Chairman A S Minocha said of the funds raised through the issue, Rs 3,500 crore would be utilised for acquisition of land and development rights, Rs 3493.4 crore for development and construction costs for existing projects and the balance for repayment of loans.

He said that of the total issue 1,000,000 shares would be reserved for subscription by employees. The issue was being made through the 100 per cent book building process wherein at least 60 per cent of the net issue shall be allotted on a proportionate basis to Qualified Institutional buyers (QIBs), five per cent of the QIB shall be available for allocation to only mutual funds and the remaining for bidders including mutual funds.

Mr Minocha said that the company had not opted for grading of the issue. The equity shares were proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

UNI