DLF Makes Strong Debut On Bourses

The tension was evident on KP Singh's face as he watched his $2 billion IPO listing at a 7 per cent premium. But while the listing was a reasonable success, its medium and long-term performance has being questioned particularly with real estate prices cooling off in areas like Gurgaon where DLF has a lot of land. But the 74-year-old real estate moghul did not seem to agree. "Its an aberration, prices are expected to go up," said KP Singh. Even though the listing was in line with expectations, there was relief across many faces at the Bombay Stock Exchange. This has been a landmark listing in the history of the country. And over at the NSE the vice-chairman and his entourage were all smiles and congratulating each other. DLF derives over half its revenues from commercial real estate and is a high-end urban player in housing.
But Rajiv Singh revealed that the strategy going forward for the company would entail a more inclusive and wider spread approach targeting the fastest growing segment of the population. "25 per cent of our revenues will now come from affordable housing, we will also be going to tier II towns," said Rajiv Singh, Vice Chairman, DLF. The much-awaited IPO has finally taken place without too many surprises. Now it is up to the promoters to live up to their promises and sustain their market share in a precarious real estate environment.