No pop up on listing for DLF

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The pricing of the issue has been such that there is no pop on listing for DLF. But it is India's largest real estate company where large long-term investors can't avoid it, said CNBC-TV18's stocks editor, Udayan Mukherjee.

DLF issue done, you never expected it to actually falter on the institutional front but I think there is a tinge of disappointment on the retail HNI crowd but that is something, which we have been saying from day 1. The pricing of the issue has been such that there is no pop on listing kind of thing going on DLF. If you just work the numbers, it would be very surprising if DLF gave you a big jump on listing day, it was fairly aggressively priced.

But it's the kind of issue, it is India's largest real estate company where large long-term investors can't avoid it, they have to be in that issue because if you are a big India investor and you can't let one of the top 10 market cap stocks pass, certainly not the largest cap stock in any particular sector. So by default a lot of people had to apply in DLF and that is what we have seen and so there is no surprise.

The extent of the oversubscription perhaps is important because atleast it will ensure in the first few days after listing there is some gradual accumulation in the stock. But I never thought HNIs would bid aggressively in this because the math was not favouring them, the Rs 550 plus borrowing cost would leave very little in terms of listing gains.

Retail was circumspect from day one after looking at aggressive valuations. This always was going to be and will probably continue to be a very institutional kind of stock because of the sheer size and scale of it. But I would be surprised if there would be a big firework on listing or anything like that.

I think while the bankers and promoters will be happy that the issue is got subscribed 3.5 times, that's on a very large ticket size. I think heart of hearts they might just reconsider that they might have left a little bit and they still can leave a little bit for retail and HNI. It doesn't matter the issue is subscribed they have got their money and more. I think sometimes it helps if you just under price issue a little bit and let retail and HNIs also get into the game, it probably works for you in the longer-term. That might be a lesson which should be taken on by the promoters and the merchant bankers. It helps to have retail and HNI on your side as well post listing.