Retail portion of DLF IPO to be oversubscribed

RELATED NEWS DLF IPO subscribed 1.02 times; 93% bids at Rs 550/sh Subscribe to DLF IPO with medium term view: Keynote Apply for Vishal Retail IPO; attractively valued: Angel HNIs may borrow to invest in DLF IPO! Blackstone Group IPO to raise $2.33 bn: CEO Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

CNBC-TV18's stocks editor, Udayan Mukherjee said that we are on track; the DLF issue will get subscribed and oversubscribed too. I think more so from the institutional side but I do not think it will do terribly badly on the retail front either. Yes the opinion is a bit divided but retail typically does not come in on day one.

My guess is that you will probably see retail getting oversubscribed as well and if the market does not go for a toss, which is something, none of us can ever predict, I would say that the retail would be oversubscribed unless you have a big meltdown in the market in the next few days. And then everybody goes into a tizzy that you cannot predict but if all things are equal then even retail will put in some money in the DLF issue.

The interesting thing would be if DLF gets comfortably done whether it will have a bit of a sentiment rub-off on the other real estate stocks because a lot of the real estate investors and traders are looking at DLF. If they get that feeling that big one did not get subscribed aggressively then they will probably have some question marks on some smaller companies.

It's not material because each company is different but in terms of sentiment it would not have a great rub-off. So DLF over subscription level will be a big comfort factor if it pans out the way we think it will for some of the other real estates stocks. But I think they are on track there is no need to worry as such; I never thought frankly that DLF would have any problems on subscription. Where it lists it depends on the market so who is to say what kind of market risk this IPO is carrying over the next three weeks.