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Friday, August 18, 2006

DLF IPO may take time

DLF's initial public offering, IPO, is unlikely to hit the market soon, according to industry sources, reports The Hindu Business Line.

"The problem of rights issue of debenture for minority shareholders is yet to be resolved and hence, the IPO will not come soon," a market source said.

Earlier, the company's shareholders had complained that they had not received the letter of offer for DLF's rights issue of debenture that opened for subscription on December 29, 2005 and closed on January 18, 2006.

DLF clarified that the letter was circulated to all shareholders and as many shareholders did not subscribe to it, the company went ahead with the IPO.

"It is difficult to say when the IPO will come out," said a source closely associated with the issue.

However, sources said that the minority shareholders should give approval.

DLF has proposed an IPO of around Rs 13,000 crore; the amount is to be utilised in facilitating expansion plans of the company. DLF will offer 20.2 crore equity shares of Rs 2 each to the public.

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