DLF was the chief real estate performer in India, possessing a strong home market in Delhi and Gurgaon (the National Capital Region, NCR). The Indian real estate market was growing quickly, and DLF desired to convert this increase opportunity into a countrywide presence by developing sizeable land reservations. With enormous debt on its balance sheet, the corporation chose to raise financing through equity. The stock markets were on a rise, and the timing was perfect to raise funds from an initial public offering (IPO).
The company filed its draft red herring prospectus (DHRP) in May 2006, but soon after the stock exchange scenario changed, and the business faced criticisms from its minority stockholders. The worldwide macroeconomic scenario had also developed into a cause of anxiety. DLF was forced to get its DRHP and set its IPO plans on hold. This case is placed in when DLF had worked out its minority stockholders' dilemma and had added substantial pieces to its land reservations. At that juncture, the management of DLF began the procedure for attempting to gauge the circumstances before reintroducing its decision to go public.
The Delhi Land and Finance IPO To Be or Not to Be case study solution
PUBLICATION DATE: October 15, 2012 PRODUCT #: W12253-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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