MUMBAI, March 13 – DLF Limited, a prominent Indian developer, might postpone its planned initial public offering (IPO) for a real estate investment trust in Singapore and instead pursue a private placement aimed at raising approximately $500 million, according to a source who spoke on Thursday. This decision arises from significant declines in global markets since the company's IPO intentions were revealed last year, with DLF, recognized as India’s most valuable property firm, initially hoping to amass $1.5 billion through the Singapore listing.
Currently, DLF is engaging in discussions with a select group of investors and anticipates finalizing a deal by the month's end, as indicated by the source.
"The markets are so unpredictable now, we may wait till they stabilize before doing an IPO," the source disclosed, preferring to remain unnamed. Furthermore, he elaborated, "We are in touch with five or six investors for a placement, which we will probably finalize by month-end."
The potential investors include financial giants such as Citigroup, Merrill Lynch, and DE Shaw, aligning with a report from the Economic Times released on Thursday. DLF aims to raise 20 billion rupees, equivalent to $500 million, through this private placement for the property trust.
Additionally, DLF intends to inject $750 million into the trust, controlled by a subsidiary known as DLF Assets, according to the same paper, citing anonymous sources.
When approached for comments, the company responsible for DLF’s media inquiries opted to refrain from making any statements. In February, DLF had publicly asserted that it was still progressing on the IPO front and anticipated launching it within the second quarter of the year, pending regulatory approvals expected shortly.
The turbulent nature of the markets has led to the postponement or withdrawal of over $23 billion in global IPO plans, as reported by Thomson Financial. While India has not yet permitted the floating of REITs, the market regulator issued draft guidelines for them in December.