DLF fixes issue price at Rs 525/sh. Gains on listing is least expected !!

Real estate major, DLF, which entered entered capital market with an initial public offer, IPO of 175,000,000 equity shares of Rs 2 each, has fixed its issue price at Rs 525 per share.

Considering an issue price of Rs 525, at an interest rate of 15% (Rs 22 per share), the breakeven comes to Rs 547 . If retail investors have DLF shares, they cannot expect anything exciting in terms of listings and if it does it will be highly unexpected. We feel that there is not much to play on listings in terms of how subscriptions panned out and real-estate companies have done, in terms of how they listed vis-a-vis subscription numbers. With 575 million sq ft of land to be developed over the next 10 years, DLF is one company to be held over a longer period of time. If you are there in queue, be there for long... you'll get reward. Short term player...well DLF is not for You!

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