DLF Limited IPO Message Board (Page 41)

dlf ipo is already subscribed retail 0.70 qib 60 fii 2times ye ander ki news h.

KR CHOKSEY BROKRAGE HOUSE CALL

If we see the name and brand of DLF, then it is a good issue. But looking at concerns like, the company has litigation matters of Rs 355 crore and PROBLEM IN LAND BANK RESERVES OWNERSHIP AS MOST OF THE LAND IS OWNED BY ITS SUBSIDIARIES, then it is an average issue. One more negative point is that its price band of Rs 500-550; it is a very expensive issue. The company should come out with the price of Rs 200-300, which is its actual price after looking at its EPS of Rs 11.31 (Unitech at Rs 11.55). So people should either apply at lower price band of Rs 500 or part payment system, which means one can pay Rs 150 at the time of application and remaining amount at the time of allotment. People can take their own call.

AFTER READING THIS LINE (PROBLEM IN LAND BANK RESERVES OWNERSHIP AS MOST OF THE LAND IS OWNED BY ITS SUBSIDIARIES ) IN THE REPORT – I scared because it has not great track record of corporate governance.

a)      it had problems with its minorities share holders
b)      one of its subsidiaries in Calcutta stock exchange fined 3-4 years ago for illegally manipulation in price of its one subsidiaries
c)      After IPO if it says that land banks partial owner is also its subsidiary then what will happened think you self.

      
Now, ‘cash’ in on DLF offer


TIMES NEWS NETWORK[ SATURDAY, JUNE 09, 2007 02:49:19 AM]
Distributors seem to be sparing no effort to ensure that the retail investor quota in realty major DLF’s forthcoming public issue gets fully subscribed. Quite a few sub-brokers and distributors in the city are offering cash incentive between Rs 50 and Rs 100 per application form.

In fact, many of them have been publicising their offers through pamphlets, though it may be in violation of Sebi guidelines. Market watchers say this practice was witnessed in some of the earlier large-sized IPOs, where there were concerns that the retail portion may not be fully subscribed.

The company did not respond to an email sent by ET. However, when contacted over the phone on Thursday, DLF group executive director Rajeev Talwar said: “We are not aware of any such thing, and DLF would certainly not do anything against the law.” DLF is looking to raise around Rs 9,000 crore from the IPO, of which 35% (around Rs 3,100 crore) is reserved for retail investors. In the past, the retail investor portion in huge public issues like ICICI Bank and ONGC had remained undersubscribed.

Real estate prices have softened in the past couple of months and a section of the market feels that this could make retail investors wary of investing in the DLF IPO. The issue has a partly paid-up option for retail investors as well, but investors who choose that option cannot sell the shares immediately on listing.

Is cash incentive an unfair practice?

According to market observers, distribution agents are merely passing on a part of their high commission that they receive from brokers for hawking the issue. In fact, brokers are reported to have been paid over Rs 200 per application, which is much higher than what they normally get for selling public issues.

Officials in ministry of finance and Sebi said this was clearly an unfair trade and illegal practice under Section 12 of the Sebi Act (Disclosure and Investor Protection). It works the same way as distributors offering cash incentives to investors investing in mutual fund schemes.

However, some lawyers differ. A few of them said that distribution agents who work for sub-brokers are not covered under the Sebi Act. So, as long as there is no direct relation with the sub-brokers’ agent and the company, it is assumed to be a fair practice. An agent offering cash to investors to get in more business does not seem to be illegal, though Section 12 of the Sebi Act gives the regulator sweeping powers over market intermediaries.

Experts say the current practice by agents is innocuous compared to a somewhat similar procedure followed during the IPO scam.

you can apply max of 180 shares, by both options. either you pay 27k or 99k

Hi

Also, i can pay 150/share now and pay rest before the due date means, can i apply those many shares and less than 1 lakh amount.

i.e. 1,00,000/150 = 666 shares can i apply ?

Reg
Jinishans

Hi

Max amount 1,00,000/- i can apply means, i can apply only 181 shares of DLF as a retail investor? Kindly let me know.

Reg
jinishans

Can Any body tell which IPO is better Vishal or DLF??

Source : Economic Times.. DLF ISSUE IS OVERPRICED

MUMBAI: The DLF initial public offer opens Monday after almost a year's wait. The size and hype surrounding the issue has built lot of expectations among investors. But reports of a slowdown in India's property market have many worried. Investment banks are said to be pushing the IPO by paying unprecedented cash incentives.

The Gurgaon-based real estate giant is entering the market with a public issue of 17.5 crore equity shares of Rs 2 each through 100% book building process. The price band has been fixed at Rs 500-550 per share. The floor price is 250 times the face value and the cap price 275 times. The IPO closes Thursday.

The KP Singh-owned company has been into construction of residential, commercial and retail. It has now added construction of hotels, infrastructure and special economic zones to the list. The company has a land bank of 10,255 acres, the largest among domestic realty players.

"The present land bank is sufficient for DLF's planned development projects over the next 10 years. The land has been amassed by the company over the years, resulting in a reasonably average acquisition cost of Rs 235 per square feet. In addition, the company's projects are located very strategically," said a Religare Securities report. The brokerage recommends subscribing to the IPO.

However, First Global finds the DLF issue steeply priced. "It is quite interesting that for the period FY07 (2006-07), DLF recognised an income of Rs 22.1 billion and profit before tax of Rs15.7 billion from the sale of certain commercial properties to DLF Assets Pvt. Ltd., a company wholly owned by the promoters. This sale represented 55% of the company's income and 61% of its PBT for the period FY07. The balance due in respect of sales to DLF Assets is Rs 8.5 billion as of May 25," says its research report.

"The DLF IPO is definitely priced higher. The premium in the grey market is just Rs 25 above the issue price, so that gives the flavour of the demand for the issue," said a research analyst with a local brokerage.

However, the institutional order book is reported to have already been fully covered, with several orders of $200-$500 million and strong interest from domestic fund managers.

"Most of the retail investors who would subscribe for the IPO would want to sell it on the listing day itself. But there is no guarantee that the issue will list higher, although there is no doubt that this is one of the best companies in the real estate field and will prove to be a good investment for a long run," the analyst added.

The IPO also comes at a time when most analysts expect a correction of about 40% in property prices, after a surge in building activity doubled land prices in major cities in India in the last two years.

"Small real estate companies will have to fear this correction, if and when it comes. A big company like DLF will not be affected much, especially because it is now also into other divisions like hotels, hospitals and SEZs," said a research analyst with Religare Securities.

Girish Bhutra of Anand Rathi believes DLF will be a good investment with 6-9 months timeframe. But he too agrees that most investors would want to get a refund from the DLF investment to put in the next big IPO -- ICICI Bank, so they would want to sell on the listing day.

"The market is abuzz with the news that the ICICI Bank IPO may open on June 21-22, which might clash with DLF's listing date. So people might put only a part of their money in DLF, leaving the rest to invest in ICICI Bank," he said.

DLF IPO sets new commission standards

As real estate developer DLF markets its USD 2.4 billion IPO, India's biggest, amid investor fears that property prices could tumble, investment banks are pushing the IPO by paying out unprecedented cash incentives.

Brokers in India typically receive commissions of 0.2-0.4% of the value of IPO shares allotted to their retail clients, but for the DLF issue brokers are being paid commissions of Rs 200-500 per application form - whether or not clients get the shares, say brokers and bankers working on the deal.

"We're paying more than normal, but different deals require different structures," said one banker associated with the issue. A primary market broker for nearly two decades, M A A Annamalai of Akshaya & Co said the incentive structure was new: "We've not heard of this sort of incentive in the primary market." Delhi-based DLF is raising money to buy land and build apartments and shopping malls as India's economy booms.

Its IPO, which opens to retail investors on Monday, is being handled by investment banks including Kotak Mahindra and DSP Merrill Lynch.

The stock should debut early next month. Officials at the banks declined comment. "I was a bit worried initially about the way the IPO would go, but the way bankers are pushing it, it looks like it would sail through comfortably," said one primary market broker, reports The Economic Times.

Sure...DLF will not give any listing gains.

hi guys
muje to lagata hai ye sub brokers bada premium deke investor ko fasa na de. ya fir ye unlogo ki chal ho ki market ko gira dea jes se log application gre market me bech de aur fir wo log bada profit le le. jo bhi karo puri samajdari se karo.
GOOD LUCK

MUST READ BEFORE APPLYING FOR DLF

FOR THE DLF ISSUE, SUB-BROKERS WITH KOTAK SECURITIES AND OTHERS ARE BEING OFFERED A WHOPPING RS 100-225 PER RETAIL FORM, DEPENDING ON THE VOLUME OF APPLICATIONS PROCURED. MOTILAL OSWAL IS OFFERING RS 150-250 AND DSP MERRILL LYNCH RS 55 PER APPLICATION FOR ITS DISTRIBUTORS.

FULL STORY

Lead managers flag off gravy train for agents in DLF issue
With the stakes being skyhigh, the managers of DLF’s Rs 9,625 crore initial public offering (IPO) are pulling out all the stops to bring in retail money. Incentives are being doled out right and left to ensure that the issue, which opens on June 11, sails through. The issue, for which the minimum application size if 10 shares, is being priced in the Rs 500-550 range.
The incentives provided to sub-brokers have shot up multifold compared to normal IPOs. Commissions for most IPOs range from 10-20 paise per application for smaller floats, and 35-45 paise for bigger ones. Occasionally, amounts of Rs 20-40 are also paid, depending on how important the issue is for the market. But, for the DLF issue, sub-brokers with Kotak Securities and others are being offered a whopping Rs 100-225 per form, depending on the volume of applications procured. Motilal Oswal is offering Rs 150-250 and DSP Merrill Lynch Rs 55 per application for its distributors.
In addition to the commissions offered to sub-brokers, employees of distribution firms are also being incentivised. The rates differ across cities in the country. Metros such as Mumbai have a higher incentive structure, while those in smaller towns may have to make do with a little less.
The lead managers, Kotak Mahindra Capital, DSP Merrill Lynch and others, have roped in their broking subsidiaries, promising them additional perks based on the number of applications employees are able to garner. Another leading broking firm, too, had offered incentives to its employees for gathering DLF applications, but the firm recently called off the proposal.
The race to collect retail applications has led to aggressive distribution measures, including cash incentives. Earlier, gifts, gold and silver coins had been on the offer, but only after the public issue was through. The high cash incentives are an indication of how prestigious the issue is for the lead managers and the markets.
“The push from Kotak Securities has been harder because it has to capture the retail investor. Kotak Securities is the only retail broker with a wide reach and brand identity. The fees that a lead manager gets also depends on the level of oversubscription he is able to hit,” says an official with a top broking firm.
He added that Lehman Brothers and Citigroup, the book-running lead managers, do not need to bring in retail moolah since they target institutional investors. As for SBI Capital Markets, it cannot offer big incentives as it is a public sector entity.
When asked about the high commissions offered to sub-brokers for the DLF float, Narayan SA, managing director of Kotak Securities, claimed that the DLF issue is very great so it will not make any difference if we paid or not.
When contacted, banks denied offering any IPO funding. But, sources point out that several banks in the country have been financing IPO applications. These banks charge anywhere between 15-18% for the IPO loan, while some have been asking for 21% for bigger floats. The funding is usually for 75% of the total application value. For Cairn, Reliance Petroleum and other big IPOs, it had been upto 85% of the application amount.
The loan, which is usually provided for a 21-day period, attracts severe penalty if not paid by the 21st day, reports DNA Money.

VIEWS OF Dipan Mehta, Member of BSE & NSE(MONEYCONTROL)

Q: What kind of a premium listing do you expect. It is very early days, but at what levels would you say people who have got the stock should continue to hold at? What levels would you expect or would you ask people to continue to buy the stock at? What levels would you expect people or want people to sell off to make a quick buck?

A: I think that real estate is not for the short-term players, because this business is not linear; you are going to have quarters, where profits are going to be down and there will be quarters that will have fantastic profit growth, because the revenue flow is going to be always volatile, which one needs to take into account when investing in real estate stocks. Having said that I think around these levels, at about Rs 550, most retail investors will get decent allocation given the size of the issue and when they apply for it, I think it should be a bit of a long-term kind of an investment; keep it as part of the core holding and hold on for 2-3 years or so.

premium 30 rs.buyer
interest - 3100 rs.

DLF will face lot of trouble through IPO process

Ajay Srivastava, Dimensions Consulting believes that there is a lot of resistance at the retail end on picking up a DLF stock. The issue is going to have a lot of trouble going through the whole process.

Srivastava told CNBC-TV18, ”Certainly ICICI Bank issue does not have any problem. I think that issue is kind of placed out abroad. As we learnt from the market sources, before even it was announced, it was kind of placed with a couple of institutions out of Singapore."

He further added, "But DLF issue, yes definitely, in the market if you see there is a lot of resistance at the retail end on picking up a DLF stock and I think that issue is going to have a lot of trouble going through the whole process."

there is a premium of 3800-4000 rs for an application of 1 lac rs in ahmedabad's grey market according to the times of india,mumbai.i will most probably not apply as d size of d ipo is big and so profits r surely not going to happen

Apply aggresively in dlf ipo there are no chance of discount u earn conform money golden chance like gmr infra jet air waya all say very expencive ipo see what happen on listing day

hey tanushree,
you need money from dlf?
i purchase every one lac application in rs. 3500/-
it is good issue. more than 150/- gain for every share.

Is it worthwile to invest in DLF IPO? Any predictions regarding what will be the listing price?

Dear friend..... can some someone explain me the meaning
of retail investor... Is DLF ipo beneficial if I apply as retail invetor by bidding 180 @ 550 = 99000 Rs. OR if I apply for 200 @ 550 = Rs. 1,10,000 .I mean below one lac or just above one lac ...