12 Jun 07 DLF IPO Oversubscribed
As of 12 noon today, the DLF IPO has been oversubscribed. The DLF IPO has received a subscription of 1.10 times the IPO issue size which means the DLF IPO has been oversubscribed by .10 times. I never expected the DLF IPO to get oversubscribed so soon. But as mentioned earlier this may be a ploy by investment bankers managing the DLF IPO. Most of the bids (almost all of them) for the DLF IPO have come in from institutional investors. Institutional investors have the option of withdrawing their bids. Further institutional investors need to pay only 10% margin money on application. I suspect institutional investors are playing games by putting in fake bids and creating hype. These bids can be withdrawn at a later date. It doesn’t make sense to me why institutional investors are rushing in on the first and second day of the IPO. Bids usually come in on the last 2 days of the IPO. Applying on the first day in no way increases the chances of allotment. Hence this raises a doubt in my mind. I prefer to wait till this evening to take a call on whether to apply in the DLF IPO or not. For more information on the DLF IPO make sure you read the previous articles on DLF IPO News and DLF IPO Details
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