HONG KONG: The order book for India's biggest ever IPO, a $2.4 billion issue by developer DLF Ltd, is fully covered just days into a two-week global roadshow, a source close to the deal said on Friday.

Another source said earlier that several large orders of between $200 million and $500 million had been made, with "surprisingly" strong interest from

Indian institutional investors. Fund managers who met company executives in Singapore and Hong Kong this week were also enthusiastic, he said.

DLF, which built much of the New Delhi suburb and outsourcing centre of Gurgaon, has relaunched its initial public offering after a stock market meltdown in May last year and some disputes with minor shareholders stalled the deal. The IPO comes at a time when many fund managers and analysts expect a property price correction in India of as much as 40 percent, after a surge in building activity doubled land prices in major cities in the last two years.

The property market has flourished since India eased rules on inward investment in the construction industry in early 2005, prompting an influx of funds. "There's generally faith in the Indian story in the longer term," said Chris Reilly, Asia head of property at Henderson Global Investors, who plans to attend DLF's roadshow in London
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