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Monday, October 02, 2006

DLF rebuilds IPO plans; may file prospectus next month

After failing in its earlier attempt to tap the capital market with the largest ever public issue in Indian history, real estate major DLF is likely to file an all new initial public offer prospectus with market regulator Sebi next month, reports agencies.

The company may file its draft red herring prospectus with the Securities and Exchange Board of India by the end of October or early November this year, company sources said.

The real estate developer is still awaiting the report from Ministry of Company Affairs on the issue of minority shareholders, sources said.

The minority shareholder issue was one of the major reason behind the collapse of the much-hyped IPO, which could have made DLF promoter KP Singh India's richest man.

Singh, along with his family and holding companies, owns 98.66% of DLF.

The company had withdrawn its DRHP with the market regulator Sebi late in August this year after failing to get the required clearance from the regulatory authorities.

The IPO was being touted as the country's biggest ever public issue with total proceeds from the sale of shares in the offer being pegged at as high as over Rs 15,000 crore (Rs 150 billion) in the market circles, even ahead of Rs 10,500 crore (Rs 105 billion) raised through a public issue by PSU oil major ONGC in March 2004.

DLF used to be a publicly traded entity until 2003. However, its latest attempt to enter the capital market ran into rough weather after a group of minority shareholders complained of discrepancies in the share of convertible bonds by the company.


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