DLF IPO: Mega issue sail through

DLF may be India's largest real estate player but its IPO has not impressed retail investors, as the IPO closed it was the Institutional players who have made the issue a success. So even if retail buyers have been lukewarm, DLF isn't worrying, its Rs 9,600 crore issue has attracted over Rs 33,000 crore proposals.

Till late evening the overall issue was subscribed 3.6 times while institutions segment was subscribed 5.23 times.Analysts say that most of the institutional flows are from hedge funds. Two funds are believed to have put in bids worth $500 million each but the retail and HNI categories haven't done too well.

Brokerages like CLSA found DLF a little overpriced. But despite all that the DLF IPO has raised the bar and the real estate sector is likely to be re-rated. In the gray market DLF is trading at a premium of Rs 15-20 per share, a small gain in the short term. But who knows there might be a bigger upside in the long term.