?We are adding three more verticals?

Speaking to Arun Kumar, Rajiv Singh vice-chairman DLF said that the co is passing through the cooling period because of the IPO.

Real estate giant DLF Universal is in the middle of a mega transformation. Though it focuses on three verticals—homes, offices and shopping malls, it is scaling up to include three more verticals—hotels, SEZs and infrastructure to achieve greater size. Speaking to Arun Kumar, Rajiv Singh vice-chairman DLF Universal said the company has planned big investments in these areas. Excerpts:

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There is a buzz that DLF is raising Rs 10,000 crore from the capital market. What is the purpose of such a mega exercise?

Our bankers will decide in the next four to six weeks. I cannot comment on the size, but it will be substantial. We have an aggressive expansion plan, which will need huge investments in the near future. We have not finalised the listing entity. Though holding companies work best in the real estate environment. But which lead entity will go to the market will be decided within two weeks. Presently, Goldman Sachs is the proposed adviser, DSP Merrill Lynch and Kotak are likely to be the lead book runners and there will be several co-book runners. I would like to add that no definite valuation has been done till date.

Will the land banks be factored in?

Land will be a factor but not the determining one. I can tell you that we will file our draft red herring prospectus next month. We will dilute more than 10 per cent and there will be a very small portion as offer for sale.

Which will be the key growth driver for DLF?

DLF is strong in home segment besides office and shopping malls. Now we are expanding our operation and adding three more verticals—SEZ, hotels and infrastructure, including construction services. In the next five to seven years, each of these units will be of reasonable size. We have already acquired four SEZs. Three of these are in Punjab—Amritsar 1,100 acres, Ludhiana 2,500 acres and Ambala 2,500 acres. And another SEZ will be in Manesar, Haryana over 25,000 acres.

For the hotel foray are you planning to ink a joint venture or have a strategic relationship with a leading foreign brand?

The company is passing through the cooling period because of the IPO. However, as a normal entity, work goes on. We are looking at many options and would like to talk about it after the public issue. You had unsuccessfully participated in the privatisation process of Delhi airport.

Are you going to participate in the process of other airports?

We are certainly keen on airport modernisation and will participate in any future plan. Since we do not have the required expertise in managing airports, we would like to participate in the process through the consortium route.