Company’s background

The company was incorporated in 1963 as American Universal Electric (India) Limited. It was
named DLF Limited in 2006. It has developed some of the first residential colonies in Delhi such
as Krishna Nagar in East Delhi, which was completed in 1949. Since then, DLF has been
responsible for the development of many of Delhi’s other well known urban colonies like South
Extension, Greater Kailash, Kailash Colony and Hauz Khas. DLF’s primary business is
development of residential, commercial and retail properties. The operations span all aspects of
real estate development, from identification and acquisition of land, to planning, execution and
marketing of projects, through to the maintenance and management of completed developments.

Reasons for coming up with public issue

1. Expenditure on acquisition of land and development rights.

They proposed to acquire lands and development rights mainly in and around 62 cities
including Greater Mumbai, Navi Mumbai, Delhi, Kolkata, Ludhiana, Amritsar,
Ghaziabad, Chandigarh, Kanpur, Lucknow, Noida/Greater Noida, Jaipur, Ahmedabad,
Faridabad, Gurgaon, Kochi, Trivandrum, Bangalore, Chennai, Hyderabad and Pune.

2. Development and construction costs for existing projects.

They propose to deploy part of the net proceeds of the Issue towards meeting the
development and construction costs of some of the projects under development. The total
amounts expected to deploy on these projects for fiscal 2008 and fiscal 2009 are Rs.
2,169.9 crore and Rs. 1,103.9 crore, respectively.

3. Prepayment of Loans

Repayment of loan taken from various bank.

4. Issue Related Expenses

Issue related expenses include, among others, underwriting and selling commissions,
printing and distribution expenses, legal expenses, advertisement expenses, registrar.s
fees and depository fees.

Break-up of their requirements:

Sr. No Particulars Amount(Rs. In

Crores)
1 Acquisition of land and development rights 3,500.0
2 Development and construction costs for existing 3,493.4
projects
3 Prepayment of loans of our Company 6766.7
Risk analysis by the management

Internal Risk Factors and Risks Relating to the Business

1. The company had received complaints from its minority shareholders with regard to
rights issue of debentures in 2005.
Company had received 519 complaints from certain shareholders of the company, who
did not participate in and were not allotted debentures in the rights issue of the Company
for various reasons, including non-receipt of letter of the offer for the rights issue and/or
the terms of such rights issue being allegedly unattractive to such shareholders.

2. DLF’s business is heavily dependent on the performance of the real estate market and the
availability of real estate financing in India.
India had experienced rising interest rates over the two fiscal years preceding the year of
IPO, with the RBI repo rate rising from 6.0% as of March 31, 2005 to 6.5% as of March
31, 2006 to 7.75% as of April 30, 2007. Rising interest rates could discourage consumers
from borrowing to finance real estate purchases and could depress the real estate market.

Our revenues and profits are difficult to predict and can vary significantly from period to
period, which could cause the price of our Equity Shares to fluctuate.

3. The increase in company’s revenues and profits before tax for fiscal 2007 was largely
due to the sale of certain commercial properties to a promoter group company, and was
not indicative of future financial performance.

4. If company is unable to manage its growth effectively, the business and financial results
will be adversely affected.

5. The company had incurred substantial indebtedness, and may not have adequate
resources to finance the real estate developments or to service the financing obligations.
Outstanding Loans March 31st, 22007 March 31st, 2006
(in rs. Crores) (in rs. Crores)
Secured Loans 9205.3 3956.0
Unsecured Loans 727.5 176.0
Total loans 9932.8 4132.0
Of which, floating rate loans 7489.3 3924.9

Ddebt-equity ratio as of March 31, 2007 was 2.5:1, and as of March 31, 2006 was 4.35:1.

6. A decline in the financial stability of the commercial and retail tenants or the prospective
tenants may adversely affect the business and financial results.

7. The company may not be able to replenish the land reserves by acquiring suitable sites.

8. The company may not be able to develop all of the Land Reserves.
Reasons for justification of issue price:

Qualitative Factors
For some of the qualitative factors, which form the basis for deciding the price refer to their
Business –Strengths and risk factors involved in investing in DLF.

Quantitative Factors
Information presented in this section is derived from the Company’s restated, consolidated
financial statements prepared in accordance with Indian GAAP. Some of the quantitative factors,
which form the basis for deciding the price, are as follows:

1. Adjusted Earnings Per Share (EPS)

DLF Universal’s Earnings per share (EPS), works out to Rs 3.31 on DLF’s post issue
equity capital of Rs. 340.88 crores.

2. Price Earnings Ratio (P/E Ratio)

On the lower price band of Rs. 500, the price earnings ratio (P/E) stands at 152 times,
and on the upper price band of Rs. 550 the PE ratio works out to a whooping 167 times.
Parsvnath Developers was trading around Rs. 320 per share on a PE of 19 times its FY
2007 consolidated earnings.
Unitech, which has a land bank comparable to DLF, quoting around Rs 605, trades at a
PE of 37.5 its FY 2007 consolidated earnings.

3. Return on Average Net Worth

The return on average net worth was around was about 48.87%.

4. Net Asset Value (NAV)

NAV as on 31st of March 2007 was 26.22 per equity share.

5. Comparison with other Listed Companies

DLF compared with other companies in the industry like, Ansal Housing, DS Kulkarni,
Mahindra GESCO, sobha developers etc. has higher EPS (12.8), return on net worth
(48.82%) and NAV (26.22).

Issue Details
Type: 100% Book Building
Size: Rs. 87.5 – 96.3 bn
Offer Price: Rs. 500 – 550
Min. App Size 10 Shares
Listing: BSE , NSE
Issue Opens: 11-Jun-07
Issue Closes: 14-Jun-07
Shares on offer: 175 m
Face Value: Rs 2
Bankers to the Issue:

ABN AMRO Bank, Deutsche Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank,
Hongkong & Shanghai Banking Corporation, Citibank N.A, Standard Chartered Bank, UTI Bank
and Centurion Bank of Punjab.

Global Coordinators and Book Running Lead Managers:

Kotak Mahindra Capital Company Limited

DSP Merrill Lynch Limited

Senior Book Running Lead Managers:

Lehman Brothers Securities Private Limited

Book Running Lead Managers:

Citigroup Global Markets India Private Limited

Deutsche Equities India Private Limited

Registrar - Karvy Computershare Private Limited

Underwriters:

1. Kotak Mahindra Capital Company Limited

2. DSP Merrill Lynch Limited
3. Lehman Brothers Securities Private Limited
4. Citigroup Global Markets India Private Limited
5. Deutsche Equities India Private Limited
6. ICICI Securities Primary Dealership Limited
7. UBS Securities India Private Limited
8. SBI Capital Market Limited

Syndicate Members

 Kotak Securities Limited

  ICICI Securities Limited
 SBICAP Securities Limited

PROMOTERS

Mr. K P Singh, Mr. Rajiv Singh, Sidhant Housing and Development Company and Panchsheel
Investment Company.

PROMOTERS HOLDING (Ordinary .A. Shares of Rs. 100 each)

PROMOTERS BEFORE ISSUE AFTER ISSUE

Mr. K. P. Singh 10,461,000 (0.68%) 10,461,000 (0.61%)

Mr. Rajiv Singh ,656,320 (1.22%) 18,656,320 (1.09%)

Panchsheel Investment 306,759,200 (20.05%) 306,759,200 (17.99%)
Company
Sidhant Housing and 307,340,000 (20.09%) 307,340,000 (18.03%)
Development Company

Reservation:

 1,000,000 Equity Shares shall be available for allocation on a proportionate basis to the
Employees
 60% of the Net Issue (10,44,00,000) shall be allotted on a proportionate basis to
Qualified Institutional Buyers (“QIBs”).
 5% of the QIB Portio (52,20,000) shall be available for allocation to Mutual Funds only
 the remaining QIB Portion (9,91,80,000) shall be available for allocation to the QIB
Bidders including Mutual Funds, subject to valid Bids being received at or above the
Issue Price.
 Further, not less than 10% of the Net Issue shall be available for allocation on a
proportionate basis to Non-Institutional Bidders and
 not less than 30% of the Net Issue shall be available for allocation on a proportionate
basis to Retail Individual Bidders.

SEBI GUIDELINES
A. Compliance Officer
The Company has appointed the Company Secretary as the Compliance Officer who
shall report to the Corporate Governance Committee of the Company on matters
relating to prevention of Insider trading as specified in the policy.

B. Preservation Of "Price Sensitive Information"

B.1 Maintenance Of Confidentiality

C. Prohibition On Dealing, Communication Or Counseling On Matters Relating To Insider

Trading
No insider when in possession of unpublished price sensitive information shall:

D. Restrictions And Procedure For Directors, Officers And Designated Employees While
Dealing In Company Securities

D.1 Prohibition In Dealing In Securities Other Than During A Valid Trading Window

Eligibility for the Issue

Clause 2.2.2 of the SEBI Guidelines states as follows:

An unlisted company not complying with any of the conditions specified in Clause 2.2.1 may
make an initial public offering of equity shares or any other security which may be converted
into or exchanged with equity shares at a later date, only if it meets both the conditions in (a) and
(b) given below:
(a)(i) The issue is made through the book build process, with at least 50% of the net offer to the
public being allotted to the Qualified Institutional Buyers (QIBs), failing which the subscription
money shall be refunded.
OR
(a)(ii) The “project” has at least 15% participation by Financial Institutions/Scheduled
Commercial Banks, of which at least 10% comes from the appraiser(s). In addition to this, at
least 10% of the issue size shall be allotted to
QIBs, failing which full subscription monies shall be refunded.
AND
(b)(i) The minimum post issue face value capital of the Company shall be Rs. 10 crore.
OR
(b)(ii) There shall be compulsory market making for at least 2 years from the date of listing of
the shares subject to the following:
(a) Market makers undertake to offer buy and sell quotes for a minimum depth of 300 shares;
(b) Market makers undertake to ensure that the bid ask spread (difference between quotations
for sale and purchase) for their quotes shall not at any time exceed 10%;
(c) The inventory of the market makers on each of such stock exchanges, as on the date of
allotment of securities, shall be at least 5% of the proposed issue of the company”
  Accordingly, in compliance with Clause 2.2.2 of the SEBI Guidelines, the Issue is being
made through the book build process, with at least 60% of the Net Issue being allotted to
the QIBs.
 In case the company do not receive subscriptions of at least 60% of the Net Issue from
QIBs, the company stated that they will refund the subscription money.
 The post Issue face value capital of the Company was Rs. 340.7 crore, which is more
than the minimum requirement of Rs. 10 crore.
 Further, in accordance with Clause 2.2.2A of the SEBI Guidelines, the company ensured
that the number of allottees, i.e. persons to whom the Equity Shares will be allotted under
the Issue shall be not less than 1,000; otherwise, the entire application money will be
refunded forthwith. In case of delay, if any, in refund, the Company shall pay interest on
the application money at the rate of 15% per annum for the period of delay.

Book building data when it was issued

LTP BOOK DATE NO. OF NO. OF ISSUE PRICE ISSU DATE INTRODUC
RUNNIN OF MEMEBE BIDDIN SIZE(LAK RANG E OF ED
G LEAD ISSUE RS G H E PRIC LISTIN IN F&O
MANAGE CENTR SHARES) E G ALONG IPO
R ES
316.5 Kotak 11/06/20
5 Mahindra 07 to
Capital 14/06/20 69 1750 RS 525 5 INTRODUC
Company 07 190 500 JUL200 ED
Ltd.; DSP TO 7
Merrill 550
Lynch
Ltd.;Lehm
an
Brothers
Sec. Pvt.
Ltd.;
Citigroup
Global
Markets
India Pvt.
Ltd.;
Deutsche
Equities
India Pvt.
Ltd.;
ICICI
Securities
PD Ltd.;
UBS
Securities
India Pvt.
Ltd.and
SBI
Capital
Markets
Ltd.

Bid and Quantity for DLF LIMITED

at BSE

Price(Rs.) Quantity
500.00     217347440    
501.00     198013450    
502.00     198013010    
503.00     198012800    
504.00     198012760    
505.00     198012750    
507.00     197511680    
509.00     197511660    
510.00     197511630    
511.00     196866580    
512.00     196866510    
513.00     196866360    
514.00     196866310    
515.00     196866290    
516.00     196865250    
517.00     196865200    
518.00     196865090    
519.00     196865070    
520.00     196864970    
521.00     196839180    
522.00     196838050    
523.00     196837970    
524.00     196837740    
525.00     196837730    
526.00     155537340    
527.00     155535440    
528.00     155535350    
 529.00     155535150    
530.00     155534980    
531.00     152330670    
532.00     152330460    
533.00     152330220    
535.00     152330180    
536.00     152327090    
537.00     152327050    
538.00     152327010    
539.00     152326870    
540.00     152326650    
541.00     152320370    
542.00     152320200    
543.00     152320140    
545.00     152319980    
546.00     152317360    
547.00     152317310    
548.00     152317210    
549.00     152317190    
550.00     152316960    
9,999.00     15368260    
Cut off price/ issue price

RS 525

SUBSCRPITION DETAILS

Oversubscription Details as Follows:

Total Issue Size 175000000
Total Bids Received 607031910
Total Bids Received at Cut-off Price 48226330
No. of times issue is subscribed 3.47

No. of No. of Shares applied Subscription (no. of

Category
Applications for times)
Qualified Institutional
219 514460490 4.93
Buyers
Non Institutional Investors 4692 16071530 0.92
Retail Individual Investors 554467 46892479 0.90
Employees 950 803940 0.80

BASIS OF ALLOTMENT AND ALOTTED PERCENTAGE

ALLOCATION TO EMPLOYEES

The Basis of Allocation to the Employees, who have bid at cut-off or at and above the Issue
Price of Rs.525 per Equity Share, was finalized in consultation with BSE. The category was
subscribed to the extent of 0.79 times. Hence FULL and FIRM allotments have been made
against all valid applications. The total number of shares allotted in this category is 799850
Equity Shares to 941 successful applicants. The unsubscribed portion of 200150 Equity Shares
has been added to QIB category. The category-wise details of the Basis of Allocation (Sample)
are as under

Total No. of Total No. of

No. of %to %to No. of Shares
Category Shares Ratio Shares
Applications Total Total Allocated
applied allocated
10 6 0.64 60 0.01 10 FIRM 60
20 10 1.06 200 0.03 20 FIRM 200
30 3 0.32 90 0.01 30 FIRM 90
40 13 1.38 520 0.07 40 FIRM 520
50 46 4.89 2300 0.29 50 FIRM 2300
500 28 2.98 14000 1.75 500 FIRM 14000
1000 29 3.08 29000 3.63 1000 FIRM 29000
1500 4 0.43 6000 0.75 1500 FIRM 6000
 2000 9 0.96 18000 2.25 2000 FIRM 18000
5000 2 0.21 10000 1.25 5000 FIRM 10000
5500 3 0.32 16500 2.06 5500 FIRM 16500
6000 1 0.11 6000 0.75 6000 FIRM 6000
8300 1 0.11 8300 1.04 8300 FIRM 8300
9000 1 0.11 9000 1.13 9000 FIRM 9000
10000 3 0.32 30000 3.75 10000 FIRM 30000
20000 1 0.11 20000 2.50 20000 FIRM 20000
50000 1 0.11 50000 6.25 50000 FIRM . 50000
200000
100000 2 0.21 200000 25.00 100000 FIRM

ALLOCATION TO RETAIL INVESTORS

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at and
above the Issue Price-of Rs.525 per Equity Share, was finalized in consultation with BSE. The
category was subscribed to the extent of 0.85 times. Hence FULL and FIRM allotments have
been made against all valid applications. The total number of Equity Shares allotted in this
category is 4, 47, 19,450 Equity Shares to 525,512 successful applicants. The unsubscribed
portion of 74, 80,550 equity shares has been added to QIB category. The category-wise details of
the Basis of Allocation are as under:

Total No. of
No. Of %to Total No. of %to No. of Shares
Category Ratio Shares
Applications Total Shares applied Total Allocated
allocated
10 58387 11.11 583870 1.31 10 FIRM 583870
20 64083 12.19 1281660 2.87 20 FIRM 1281660
30 31418 5.98 942540 2.11 30 FIRM 942540
40 32006 6.09 1280240 2.86 40 FIRM 1280240
50 52725 10.03 2636250 5.90 50 FIRM 2636250
60 14069 2.68 844140 1.89 60 FIRM 844140
70 7216 1.37 505120 1.13 70 FIRM 505120
80 13322 2.54 1065760 2.38 80 FIRM 1065760
90 64493 12.27 5804370 12.98 90 FIRM 5804370
100 41290 7.86 4129000 9.23 100 FIRM 4129000
110 2570 0.49 282700 0.63 110 FIRM 282700
120 3070 0.58 368400 0.82 120 FIRM 368400
130 1622 0.31 210860 0.47 130 FIRM 210860
140 1544 0.29 216160 0.48 140 FIRM 216160
 150 5911 1.12 886650 1.98 150 FIRM 886650
160 1759 0.33 281440 0.63 160 FIRM 281440
170 1635 0.31 277950 0.62 170 FIRM 277950
180 127214 24.21 22898520 51.20 180 FIRM 22898520
190 1178 0.22 223820 0.50 190 FIRM 223820

Allocation to Non Institutional Investors

The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at and
above the Issue Price of Rs.525 per Equity Share, was finalized in consultation with BSE. The
category was subscribed to the extent of 0.84 times. Hence FULL and FIRM allotments have
been made against all valid applications. The total number of Equity Shares allotted in this
category is 1, 46, 11,290 Equity Shares to 2,172 successful applicants. The spill over portion of
2,788,710 Equity Shares has been added to QIB category. The category-wise details of the Basis
of Allocation (Sample) are as under:

Total No.
Total No. of
No. of % to of %to No. of Shares
Category Ratio Shares
Applications Total Shares Total Allocated
allocated
applied
190 56 2.58 10640 0.07 190 FIRM 10640
200 534 24.59 106800 0.73 200 FIRM 106800
1000 156 7.18 156000 1.07 1000 FIRM 156000
2000 36 1.66 72000 0.49 2000 FIRM 72000
5000 21 0.97 105000 0.72 5000 FIRM 105000
10000 21 0.97 210000 1.44 10000 FIRM 210000
20000 5 0.23 100000 0.68 20000 FIRM 100000
40000 1 0.05 40000 0.27 40000 FIRM 40000
80000 1 0.05 80000 0.55 80000 FIRM 80000
100000 1 0.05 100000 0.68 100000 FIRM 100000
241580 1 0.05 241580 1.65 241580 FIRM 241580
266150 1 0.05 266150 1.82 266150 FIRM 266150
271500 1 0.05 271500 1.86 271500 FIRM 271500
275000 1 0.05 275000 1.88 275000 FIRM 275000
293600 1 0.05 293600 2.01 293600 FIRM 293600
454500 1 0.05 454500 3.11 454500 FIRM 454500
550000 1 0.05 550000 3.76 550000 FIRM 550000
886700 1 0.05 886700 6.07 886700 FIRM 886700
3827000 1 0.05 3827000 26.19 3827000 FIRM 3827000
ALLOCATION TO QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the
SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (57,
43,471) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining
available shares (10, 91, 25,939) on proportionate basis. Total number of Equity Shares allotted
in this category is 114869410 Equity Shares to 202 allottees i.e. 100% of valid applicants.

Category Fls/Banks MFs Flls VCs Insurance Companies Total

No.of Shares 4576704 6391817 100943548 9918 2947423 114869410

LISTING DETAILS

DLF Ltd, the largest real estate development company, listed on the NSE on Thursday at Rs
526.60 against the issue price of Rs 525.

The stock rose to a high of Rs 583.95 on increased buying demand before settling down.

At 10:13 AM, the share was at Rs 562.55, up Rs 37.55 or 7.15%. Around 1.81 crore shares were
traded in the counter.

The stock saw some unusual post listing trading on the BSE. After listing at Rs 582, the share
surged to Rs 714.25, premium of 36%, but corrected later. At 10:44 AM, the stock was at Rs
550, up Rs 25 or 4.76% to the issue price.

INVESTOR GRIEVANCES

Many grievance had been received but this is one of complaint made by a consumer follows

DLF
Posted: 2008-04-04 by Suhas Gajanan Salokhe

DLF IPO Refund Order not receive

Dear Sir,
On Jan 2008 you were send me remind letter for DLF IPO Refund Letter. I does not receive
refund order of Ipo.Mydetails are as follows
Application No. : 67814180
Shares Applied : 30
Amount Paid : 16500.00
Shares Alloted : 30
Refund Order No. : 262536
Refund Amount : 750.00

For new issu of refund order I had send you IDEMNITY BOND on Rs 20 non judicial stamp
paper in Feb 2008. But yet I dont receive any responce from you. So please send me the status.

Regards
Suhas Gajanan Salokhe.

More DLF complaints

 DLF - delay in startup of project
 DLF - DLF - Misleading Customers - DLF New town Heights Sec 86
 DLF - no refund of booking amount

Reasons For Closing Date Extension,Price Revision,Delay In Listing Calling Off The Public
Issue To Be Covered

The company’s 1.75-million share issue, offered in the price band of Rs 500-550, was subscribed
3.4 times on close June 14. The issue price was set at Rs 525 per share.

Of this, qualified institutional buyers bid for 5.1 times the number of shares on offer to them
while retail investors fully subscribed to their shares.

DLF IPO was one of the most tumultuous IPOs in recent times.
Right from the time the issue was conceived in the first quarter of 2006, it was
plagued by controversy. There was intense speculation that a company with
significant interests in real estate did not want DLF to get big money from the stock
markets.

But soon after DLF filed its draft red herring prospectus (DRHP), reports that the
company had short changed its shareholders on an earlier rights issue of debentures in
November 2005 surfaced.
A public interest litigation was filed and the company received over 500 complaints
from shareholders.

The company eventually allotted 1.9 million shares with retrospective effect. Around
the same time, real estate stocks started to crash on the markets.

But this crash shaved off nearly a third of their stock prices. Suddenly, DLF started to
look expensive and its merchant bankers began to get to feel jittery. They advised
against going to the market with an IPO. Even as all of this was happening, Sebi
issued a new directive.
GRADING METHODS AND IT’S USEFULNESS

CRISIL has assigned its rating of ‘A/Stable’ to the term loans of DLF Developers ,as
on 28th May 2009

The rating reflects the financial support DLF Info City receives from the DLF group.
This rating strength is partially offset by the fact that the company’s lease rental
revenue streams are inadequate to service it’s debt

Outlook: Stable
CRISIL believes that DLF Info City will continue to receive financial support from
the DLF group. The outlook could be revised to ‘Positive’ in case of a substantial
andsustainable improvement in the company’s lease rental revenue stream and debt
protection measures. Conversely, the outlook could be revised to ‘Negative’ in case
of dilution in the support from the DLF group.

COMMENT

According to us credit rating of ‘A’ is not a good indication for a investor.They do

not have sufficient revenue streams to service it’s debt.which makes it not a good
investment option,as of now.

FACTORS INFLUENCING DEMAND FOR A PUBLIC ISSUE

It said that real estate companies could get land banks valued, only if a clear title deed
existed. The move, on Sebi’s part, was a well thought and fair plan to rein in errant
real estate companies milking the primary markets.

For DLF though, the order took the wind out of its sails. Sources said this directive
shaved off Rs 100-150 from the proposed issue price. The reason being that when
DLF’s public issue was first mooted, analysts rated the company highly for the land
bank it held.

This land bank though, was held using smaller companies under different names as a
front. This was because DLF reckoned that smaller companies could negotiate a
better price for land than what DLF could. They had realised that often sellers quoted
higher than market prices if DLF was the buyer.
They did and the issue went through. Though company sources would never
confirm, DLF had plans to issue shares in the region of Rs 900-1,100,when it first
filed DRHP. It eventually issued stock at Rs 525 and reduced the shares on offer

INFLUENCE OF INTERMEDIARIES ON PUBLIC ISSUES

Investment banks are increasingly being named in association with new issues in
diverse roles such as issue managers, sponsoring brokers and corporate advisors.

DLF has chosen substantial intermediary involvement since it is typically older,

retain more capital, seek to raise larger amounts of capital and are without
independent expert certification.

The impact of intermediary involvement has not been significantly different for the
different levels of intermediary involvement once issue characteristics have been
accounted for. The different roles did not provide the same level of issue quality
assurance.

The investment bank typically also provided marketing and management services.
These banks still placed some reputation capital at risk by consenting to being named
in the prospectus.

Reputation of the investment bank involved was positively related to the amount of
pricing and issuer wealth loss when using market share measures of reputation but
negative when using quality perception measures. Underwriter reputation was
positively related to pricing to some extent. But there is still uncertainty over what
underwriters truly brought to the DLF IPO process.

Reputation of underwriters for DLF helped to decrease uncertainty faced by potential

investors and hence the amount of issuer wealth loss. It is difficult to conclude what
are the true drivers of the relations between involvement and firm characteristics and
the pricing of DLF IPO.

Brokers to the issue were typically contracted to distribute and allocate the new
shares to subscribers. They consigned to being named in the prospectus but rarely
participate in the pre-issue process.
INVESTOR RETURNS AS ON 3RD JULY 2009

Closing price as on 3rd july-Rs.337

Issue price of dlf share-Rs.525

Investor return=(337-525)/337= -39.26%

ISSUE EXPENSES

Share issue expenses incurred till March 31, 2007 amounting to Rs.

11,277.40 lacs and carried under loans and advances as on April 1, 2007

were adjusted against Securities premium received from the public offer

during the year.