Indian real estate major DLF delays IPO plans

Indian real estate developer DLF has postponed its IPO that was expected to raise $3.5 Billion for a 12.8% share in the company. The IPO was expected to be the largest in India's capital market history.

"The company felt that due to lapse of four months since the filing, the financial information in the offer document had become dated and needed to be updated," DLF said in a statement. There have been several positive developments which need to be disclosed to investors," said Ramesh Sanka, DLF's chief financial officer. The company plans to discuss details of its future business plans in a revised prospectus.

Market watchers expect the company to revise the offer price downwards as there has been a correction in the marketplace since DLF first filed the draft prospectus.

Meanwhile, other developers are also watching the capital markets closely. Omaxe is reported to be mulling over a Rs. 1,000 crore IPO. This follows the success of issues such as Tech Mahindra and GMR Infrastructure last month - the Tech Mahindra issue was oversubscribed by 72 times, and GMR Infrastructure by 7 times. Parsvnath Developers and Ahluwalia Contracts have already filed prospectus for public offers.


By INRnews Correspondent

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