DLF Plans $3B-Plus IPO, India's Biggest

MUMBAI-Property company DLF Universal could raise up to $3.5 billion in what could be India’s largest public offering ever. As a first step, DLF has filed a prospectus with the authorities to sell a 12.8% stake.

The offer document adds that Jones Lang LaSalle had valued its 228 million sf of holdings at 853 billion rupees ($18.9 billion). Analysts say valuation of DLF’s land holding is likely to determine the response to the IPO, expected to open in June, and its future stock performance. One added that DLF could raise up $3.5 billion; others have suggested £2 billion. The more optimistic figure would value the company at about $25 billion.

DLF officials said in April that they wanted access to funds to fuel the firm’s rapid expansion and that a public listing had more advantages than other means. It plans to develop special economic zones and hotels to tap into a new trend in India’s booming property market.