DLF was the biggest real estate player in India with a strong domestic market in Delhi and Gurgaon (National Capital Region, NCR). The Indian real estate market is growing rapidly, and DLF wanted to convert this opportunity for growth in the presence of the whole country by building significant reserves. With a huge debt on its balance sheet, the company decided to raise funds through equity. Stock markets have been on the rise, and the time was perfect for raising funds from the initial public offering (IPO). The company submitted its draft red herring prospectus (DHRP) in May 2006, but soon after that the stock market scenario has changed and the company has faced complaints from its minority shareholders. Global macroeconomic scenario became a cause for concern, too. DLF had to withdraw its DRHP and put her plans IPO on hold. This case is in January 2007, when DLF decided to issue its minority shareholders, and added a significant part of their reserves of land. At this point, management DLF process began trying to re-evaluate the circumstances of his decision to go public. "Hide
by Nandita Yadav, Pratap Chandra Biswal Source: Richard Ivey School of Business Foundation 18 pages. Publication Date: October 15, 2012. Prod. #: W12253-PDF-ENG
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