A dominant view is that the new shares, which may be allotted to the 1,000-odd minority shareholders of the Gurgoan-based property developer, will have to be locked-in for at least till December next year.
This opinion is based on the one-year lock-in period norm set by the Securities and Exchange Board of India (Sebi) on preferential share allotments.
However, there is another view. Going by the date when the preferential shares were allotted to DLF promoters K P Singh and family (March 2006), its supports say that the same date should be applied to the minority shareholders also.
This means that the minority shareholders should be allowed to sell their new shares during March next year, instead of December 2007 as proposed by certain quarters.
The much-publicised initial public offering by DLF Universal is expected to hit the market early 2007, which will also open the door for the 1,000-odd minority shareholders to sell their shares in the market.
As per a complex conversion process of the debenture-cum-rights issue, for every one share held in DLF Universal, minority shareholders, who were denied this offer in March 2006, is entitled to get 20,000 shares in the company.
At a conservative valuation of Rs 600 per share, the 1,000-odd shareholders are expected to be richer by at least Rs 1.2 crore (Rs 12 million), considering that the 1000-odd shareholders hold a minimum of 50 shares in DLF Universal. DLF had settled its dispute over non-allotment of preferential-cum-rights issue at its extra-ordinary meeting early this week.
"We are willing to wait. Also, we see a big upside for DLF shares and it would make no sense to dispose the shares in a hurry," said a minority shareholder.
DLF plans to raise $2-2.5 billion through the IPO. As per the documents filed with the Sebi in May, DLF planned to sell 20.2 crore (202 million) shares, of which 18.71 crore (187.1 million) would be new stocks. It had planned an additional 17 million shares on demand, bringing the sale to 12.77 per cent stake.
