DLF files public issue documents

Last Updated: Sat, Nov 24, 2012 07:05 hrs

DLF, India's largest real estate player, filed the documents related to its initial public offering (IPO) to the Securities and Exchange Board of India (Sebi) today, as ordered by the market regulator.

Sebi had asked DLF to give information and documents related to its IPO disclosures to carry out preliminary investigations following a court order.

Sources close to the company told Business Standard that no penalty had been imposed on DLF. Earlier, it was estimated DLF would have to pay a fine of Rs 5 lakh per day after the Delhi High Court dismissed the realtor's plea on November 20.

Delhi-based businessman Kimsuk Krishna Sinha had alleged that DLF intentionally made a false statement that it had no association with Sudipti Estates, one of its subsidiaries, against which he had filed a criminal case that he was duped of Rs 34 crore.

In the FIR against Sudipti, Sinha alleged the company had compelled him to transfer certain plots of land, but did not fulfil the promise of developing the land and giving higher returns.

Analysts tracking DLF dismissed it as a non-issue. "I do not see any consequences for DLF due to this case. It is a small case on whether DLF should have mentioned the Rs 34-crore police complaint in its IPO disclosures, but has been dragged too long," said a Mumbai-based analyst who did not want to named.

DLF said Sudipti is a separate legal entity owned and controlled by different individuals. The realty major, which in its Draft Red Herring Prospectus (DRHP) filed for an IPO in May 2006, had mentioned Sudipti was its associate company. DRHP had been withdrawn and a fresh prospectus was filed in January 2007 in which Sudipti was not mentioned as an associate.

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