Delhi-based DLF Group, India’s largest real estate developer, has awarded the mandate for all communication needs of its forthcoming IPO to Concept Communications. The account size is pegged in the region of Rs 30 crore. DLF Universal Ltd is coming up with one of the largest in India IPOs in June-July worth Rs 10,000 crore to fund its pan India expansion plans. The group is also venturing into the hospitality sector.
According to Vijay Vancheswar, Vice-President, DLF Group, Concept Communications would be undertaking both advertising and public relations for this IPO. Goldman Sachs and Merrill Lynch have been appointed advisers to the issue, while Kotak Mahindra and DSP Merrill Lynch would be the book running lead managers for the upcoming issue.
Concept Communications is a prime ranking IPO communication company that is credited with handling mega IPOs like ONGC (Rs 10,000 crore), NTPC (Rs 5,000 crore), and Maruti (Rs 2,500 crore) in the past. Recently, it has handled issues of Sun TV, JK Cement, GMR Industries, etc, and its current clients include Hanung Toys and Textiles, Sun Star Ltd, Ace Ltd, Orient Craft Ltd. The Rs 750 crore Sun TV issue that closed on April 7, 2006 was oversubscribed 50 times.
Speaking to exchange4media, Vivek Suchanti, Managing Director, Concept Communications, said, “Handling a mega issue is always a big challenge in terms of positioning of the company as it entails huge amount of PR communication.”
Suchanti, who is upbeat after the huge success of the Sun TV IPO, said that the challenge in case of the DLF IPO lay in devising an effective communication campaign to raise Rs 4,500-5,000 crore from retail investors, including high networth individuals.