DLF listed at 582.90 on the BSE

Mumbai, July 5: Real estate major DLF's Initial Public Offer (IPO) was listed on the bourses at Rs 582.90 today against the earlier price band of Rs 500-550.

The scrip soared to Rs 714.25 within the first 15 minutes taking the company's market capitalisation to around Rs 9,500 crore.

''The national economy is booming in a fast pace despite certain hiccups, necessitating a major requirement for better housing and infrastructure. Foreign Direct Investments (FDI) are also high favoring growth margins. I believe DLF IPO would bring more business in the market,'' DLF chairman K P Singh opined.

DLF currently has 45 million square feet area under construction and is expected to deliver around 22 million square feet per year, Mr Singh said.

He noted that the industry is striving to meet supply needs against a massive demand in the real estate market.

''The problem is not the demand but how far we will be able to supply. There is a healthy competetion in market,'' he said.

DLF will disburse the issue proceeds from the ''industry defining'' IPO for purchasing land. The company is looking for about 7-8 million square feet area per year.

Mr Singh also noted that the industry is yet to realize the full potential of the real estate sector which has been lying neglected from government policies in the last four to five years.

''The government policies has lead to collapse in urban infrastructure and now it has become a horrendous task to meet the major requirements'', Mr Singh added.

Reflecting the response to DLF's IPO, BSE Sensex touched a record high of 14,963.26 immediately after trading started.

The lead managers of the issue are Kotak Mahindra and DSP Merrill Lynch with Citigroup, Deutsche Bank, ICICI Securities, Lehman Brothers, UBS and SBI Capital Markets.

UNI