Manish Gunwani, Vice President - Institutional at Brics Securities has said that DLF’s NAV per share ranges between Rs 320 to Rs 350. He added that the valuation arbitrage between Unitech and DLF is no longer significant.

Excerpts from CNBC-TV18's exclusive interview with Manish Gunwani...

Q: What do you make of this pricing band assuming USD 23 billion or the higher end of that band Rs 550, is the pricing fair, conservative or aggressive?

A: I think right now it is difficult to take a view on fundamental basis because we still do not know the full details, location of the land bank, timeframe it will be developed etc. I think a lot of things are in balance. Valuation is definitely not cheap but there are some subjective positives as well. So I think it is a very interesting pricing.

Q: What is your own estimation though of what DLF holds at this point in terms of a land bank and what financial projections would you put for it, even for FY08?

A: As I said, it is really difficult because we don't know the exact location of the land and the property market too has been pretty slow for last few months. So our very broad estimates on NAV, for example, ranged from Rs 320-350. But this is very tentative because the full details of the land bank are not really there in the RHP.

Q: From the little that you know, from the last prospectus and the details, which are doing the rounds, how would this pricing be compared to that of like a Unitech in the market? They are asking for USD 23 billion marketcap, Unitech is about 11, is that premium justified?

A: Our broad estimates are that the multiple to NAV is more or less evened out right now at around 1.5-1.7. So the arbitrage in a valuation of DLF and Unitech is no longer substantial.

Q: Do you expect some of this lack of clarity to get cleared up by the time the issue opens? And do you expect that to impact appetite at all?

A: I guess there is a lot more clarity through the road shows and the analysts meet. So I think, that will probably help people out.

Q: So at this point, if you had to put out a report on it, would you say subscribe or avoid or no comment?

A: No comment.