DLF plans IPO; to use Rs 3,500 crore for land acquisition

Lucknow, June 7 (UNI) Real estate developer DLF ltd plans to bring out an IPO next week with a public issue of 17,50,00,000 equity shares of Rs two each, the company announced today.

Out of the net proceeds of the issue, the company proposes to utilise Rs 3,500 crore for acquisition of land and developing rights, Rs 3,493.4 crore for development and construction costs of existing projects and the remaining amount for prepayment of loans.

DLF Chief Financial officer (CFO) Joy Saxena said here that the company would enter the capital market on June 11. ''The price band has been fixed at Rs 500-Rs 550 per equity share...the floor price of the band is 250 times the face value and the cap price is 275 times the face value,'' he said.

Out of the total issue, 10,00,000 equity shares of Rs two each will be reserved for subscription by the employees, leaving a net issue of 17,40,00,000 equity shares for the public.

UNI