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Monday, June 19, 2006

DLF IPO to hit market by July 15

Unfazed by the controversy over the issue of conversion of debentures and the prevailing volatile market conditions, real estate company DLF said its initial public offering, IPO to raise about Rs 13,500 crore (Rs 135 billion) is on schedule and would hit the market by July 15, reports The Hindu Business Line.

"We are on schedule as far as the IPO is concerned and it will hit the market in early July between July 10-15. There will also be no dilution as far as the number of shares to be issued are concerned or the amount that we plan to raise. The valuation is a product of discovery of price through the book-building route.

We will determine the price of the shares in consultation with the merchant bankers after we get Sebi's go ahead," Saurabh Chawla, Senior Vice-President-Finance, DLF said.

Letter of offer

The company also clarified its position with regard to allegations by the company's minority shareholders on non-receipt of Letter of Offer for DLF's rights issue of debenture that opened for subscription on December 29, 2005 and closed on January 18, 2006.

"The company circulated a Letter of Offer to its minority shareholders under Certificate of Posting on December 23, 2005 mailed by an independent licensed bulk mailing agency, and later also advertised in newspapers.

Many minority shareholders opted not to subscribe, and later realised that they missed the opportunity. We decided to go for the IPO in March this year," Chawla claimed at a conference here.

"We have put our case to Postal Department and Sebi. Let the investigation agencies come out with the facts, " he said.

The company claims that a total of 1,083 Letters of Offer were mailed and that the company received 138 applications.

Out of 138 applications, 10 were rejected for not complying with the terms of the rights issue and allotment was made to 128 applications out of which minority shareholders accounted for 78 applications to whom, debentures were also allotted.

As many as 107 letters were returned undelivered by the Postal Department and four applications were received before January 22 and 24," he said.

"We will co-operate with the investigation. In fact, we are surprised by the slow pace of investigation," Chawla said, adding that the Sebi enquiry is simultaneously on and the company is responding to all the queries being posed by the market regulator.

However, he declined to elaborate as to what kind of queries were coming from the Sebi.

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