Evaluate DLF as an IPO candidate from various stakeholders point of view.

1. Delisting from Stock Exchanges on initial venture:-

DLF initially had their stocks listed in both BSE in 1975 and DSE in 1976. But later their
equity shares got delisted from BSE in 1982 where they sought the reason of substantial
increase in listing fee as a reason.
But the big blow came in the year 2002, when the promoters admitted the violation of SEBI
Regulation 1997 and paid US $ 10,000 for Insider trading which was strictly prohibited. They
were delisted from DSE in September, 2003 and the promoters bought back the majority of
the shares i.e. 96.26 per cent of its equity.

2. Next Venture in IPO:-
However DLF came back in May 12, 2006 filing for a public offering to raise more than US
$2,200 million, and was anticipated to be the largest IPO at that point of time.
There were several reasons for this anticipation:-

2.1 Growth:-
In 2006 the growth of DLF was huge; completing 220 million sq feet area
development, under construction 46 millions square feet and had further planned
projects of 528 square feet million. They made profit of US $ 38.34 million and had a
combined asset of US $ 191.1 million as on 31
st
March.
They had become the largest real estate development company in India in terms of the
total area developed. Its net worth increased at a CAGR of 14.2 percent.

2.2 Strategies:-
The joint ventures with Hilton Hotel, WSP, Nakheel and JV with Feedback
Ventures not only helped them to grow not only in returns and reputation, but also
these created a huge confidence in the investors. Thats why it attracted a lot of
investors attention. DIPP responded positively to the clarification sought by DLF
regarding participation of FII s in the pre-IPO placement
3. Another Setback - Shareholders Complaint:-
But during preparation for the public offering SEBI received complaints from against DLF
from its minority shareholders. They complained that in December 2005, the company had
made right issue of debentures but had omitted to post offer letter to minority investors, As a
result these investors were unable to cast their vote and were deprived of 440 shares for each
share they had previously.
4. Settlement with the shareholders:-
However on August 31, 2006 DLF withdrew its offer document and reorganised and resolved
the minority shareholders issue. On November 14, 2006 the company obtained shareholders
approval and the minority shareholders withdrew the complaints after they were compensated
with appropriate rights, bonus and splits