Capital Markets Await Mega IPOs; DLF Oversubscribed 3.4 times

On the third day of its initial public offering, DLF was subscribed by more than 3 times the 175 million shares on offer, with institutional investors and high net worth individuals forming the chunk of the applicants.

The 104.4 million shares reserved for institutional investments have been oversubscribed over 5 times, though the retail portion is yet to pick up.

The price per share, on a band of Rs.500 to Rs.550 is likely to be decided
before the week closes.
Meanwhile, Omaxe Ltd. is working on its IPO to raise Rs.1, 400
crore from the capital market next month in July.

Omaxe had received SEBI’s approval for a public issue in May, and the company is in discussions with merchant bankers on the price-band it can offer.

Omaxe would offer 1.78 crore equity shares of Rs.10 each through the 100% book building process, which would represent 11.20% of the paid-up capital of the company if the green shoe option of 17.5 lakh shares is exercised.

Omaxe has a land bank of 3000 acres and 47 projects are in various phases
of construction.
ICICI Bank is preparing to go public with India’s biggest sale of shares to raise Rs.175 billion, split equally in the domestic and overseas markets. The sale may even go up to Rs.201 billion rupees if the demand exists.

The bank would deploy the funds in growing segments like infrastructure
and manufacturing, which it expects will require USD 500 billion in the
next 3 years.

Merrill Lynch, Goldman Sachs and JP Morgan Chase are working
with ICICI Bank to sell its shares in the domestic and overseas
markets. JM Morgan Stanley and Enam Financial Consultants are also partnering
the Indian portion of the public issue.

Other banks in queue in the capital market are HDFC Bank, UTI
Bank and State Bank. HDFC Bank is likely to hit the market in
July, and would utilise the capital to meet growing credit demands
and higher capital adequacy.