The realty King

IIPM PUBLICATION

After what would seem like an eon for K. P. Singh, DLF is inching closer to a high stake comeback on the bourses. When one looks at the reworked red herring prospectus, the company’s business model does look promising as ever. The company claims land reserves across India of around 10,255 acres with a developable area of around 574 million square feet. The company’s balance sheet is in the pink of health, with net income for 2006 at Rs.12.42 billion (CAGR of 54% since 2004) and net profit going strong at Rs.1.92 billion (CAGR of 89%). And if one wishes for an insight into what this issue would mean for promoter valuations; the net worth at fair price of Rs.550, based on the expected mobilisation of Rs.110 billion for 202 million equity shares for the promoters (K. P. Singh & his son Rajiv, who hold over 87% of the stakeholding) would amount to a whopping $19.13 billion.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative