AbhishekGupta

The approval to raise Rs13,600 crore came a year later after the filing of draft prospectus

DLF Ltd, the Delhi-based developer controlled by billionaire Kushal Pal Singh, received clearance from stock- market regulator Securities & Exchange Board of India (Sebi) to sell shares in an initial public offering (IPO) that, apart from being one of India’s largest ever, will set benchmarks for the valuation of real-estate companies and assess the appetite of investors for stocks of such firms.

As per Alex K. Mathew, chief analyst at Geojit Financial Services Ltd., the DLF IPO may be a benchmark for the sector. After this, the real-estate sector will get re-rated on the basis of the response to this IPO.

DLF plans to offer 175 million shares, each with a face value of Rs2, to the public through a book-building deal, which effectively means that investors will bid for the shares to arrive at the issue price. Since the company filed its application with Sebi before the regulator enforced a rule on mandatory rating of IPOs, its offering will not be rated.

Source: livemint.com/2007/05/07160337/Sebi-clears-DLF-initial-public.htm