DLF's IPP subscribed twice asking amount

The response to DLF’s Institutional Placement Programme (IPP), has been understood to be twice the asking amount already, reports CNBC-TV18’s Nayantara Rai.

DLF shares have been bought by mostly foreign institutional investors (FII).  In fact, when last week DLF decided that they wanted to go ahead with this institutional placement programme, they had already got a pretty healthy order demand. The company was trying to go ahead with the programme last week itself, but it wasn’t able to file the prospectus in time, among other things.  One investor alone has placed an order for almost half the book at USD 165 million. There are three investors who have placed orders for USD 100 million each. The floor price is about Rs 222 per share. This institutional placement programme is to pare DLF’s debt to meet Sebi guidelines of having a 25 percent minimum float by the month of June. Fresh equity of 8.1 crore shares is on offer. According to sources, DLF will announce the response to the issue at 4 pm to the stock exchanges, which of course is the practice. But the order book has been covered about 1.2-1.5 times at Rs 225 per share, which is higher than floor price of Rs 222. But overall, it has got a subscription of over two times so far.