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The Delhi Land and Finance IPO: To Be or Not to Be Case Solution & Answer

DLF was the best player of real estate in India, with a strong domestic market in Delhi and Gurgaon (the National Capital Region NCR). The real estate market in India was booming, and DLF wanted to turn this opportunity into a growing nationwide presence by building significant land reserves. With the huge debt on its balance sheet, the company decided to raise funds through equity. Equity markets went up and the weather was perfect to raise funds from an initial public offering (IPO). The company filed its draft red herring prospectus (CHRO), in May 2006, but shortly after the market situation has changed, and the company is facing complaints of the minority shareholders. The overall macroeconomic scenario has become a concern as well. DLF was forced to withdraw its DRHP and put its IPO plans on hold. This case is set in January 2007, when DLF had solved the problem of minority shareholders and added a significant portion of its land reserves. At this time, the DLF address the process of trying to assess the circumstances prior to the reintroduction of its decision to go public was initiated.
by
Nandita Yadav,
Pratap Chandra Biswal
Source: Ivey Publishing
18 pages.
Release Date: October 15, 2012. Prod #: W12253-PDF-ENG
The Delhi Land and Finance IPO: To be or not to be? Case Solution

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