The subscription for the much hyped mega DLF IPO has ended. DLF IPO has performed decently but below market expectations. DLF IPO has been subscribed by 3.47 times (oversubscribed 2.47 times). Retail category has been subscribed by 0.975 times (undersubscribed by 0.025 times). Hence retail investors in the DLF IPO will receive full allotment. Investors who used the part payment option to apply in the DLF IPO might face a problem. These investors will be alloted partly paid shares of DLF on the allotment date. Investors won’t be able to sell the partly paid shares on the listing date. After getting allotment, they will have to pay the remaining money and then convert the partly paid shares to fully paid shares. This process might take more than 1 week considering the size of the DLF IPO. Considering the fact that the time between knowing the allotment status and listing date of an IPO is very small, these investors would not be able to sell the DLF shares that they have been alloted on the listing day of DLF. If DLF share prices tank after listing then losses might be huge since full allotment will be made and investors won’t be able to limit losses by booking losses on the listing date. So, it might be a double whammy for small investors who used the part payment option. Institutional investor category in the DLF IPO has been subscribed by 5.13 times (oversubscribed 4.13 times) and the High Networth Individual category has been subscribed by 1.14 times (oversubscription ratio : 0.14 times). High Networth Individuals might get close to full allotment since the unsubscribed portion in the retail and employee categories will be added to HNI category.

I feel DLF Universal Limited will have a decent listing and might provide investors with some listing gains if the IPO issue price is fixed at the lower price band of Rs 500. I recommend selling on listing since peer group companies especially Unitech is available at a much lower valuation. The listing date of  DLF is likely to be somewhere in the second week of July. DLF will list both on the NSE and the BSE and will be admitted into futures and options trading on listing. Investors who have invested in the DLF IPO can expect to receive the IPO refund in the first week of July through ECS. Allotment is likely to be made a few days before the listing date. The allotment status of DLF IPO and the details for checking the allotment status online will be posted here as soon as they are available.

DLF IPO Price : DLF has fixed the issue price for the IPO. The DLF IPO Issue price is Rs. 525. DLF seems to have chosen to play it safe by fixing the IPO issue price exactly in between the higher end and lower end of its IPO price band. This means investors might get some listing gains since Institutional investors were willing to buy at the higher price band. The institutional investor category has been subscribed by over 4 times at the higher end of the price band and by over 5 times at the lower end of the price band.