See the demand graph here and here.
Investors are advised not to invest in this issue. The reasons are well-explained by:
1).Sucheta Dalal - here.
2).Ashok Kumar - here.
Btwn, Enam Securities too came out with a report on the Real Estate sector and has rated "DLF" as an underperformer with a price target of less than Rs.420, i.e. a good 15-20% below the issue price.
Update: Rakesh Jhunjhunwala in an interview with CNBC had this to say about the DLF IPO:
Q: Have you invested in the real estate sector at all?
A: I don't have any investments in real estate.
Q: How is that possible, last one-one and half years they have been some of the biggest multi-baggers? You must have had reasons to look at those opportunities and let them pass?
A: It's a very dicey subject. None of the real estate companies pay tax. I don't know how they get their profits. Second thing I also feel that anything, which can be valued as one plus one is equal to eleven; is not what ultimately gives you returns in markets. I don't know, I have never been into real estate bull in my life and wrongly so.
Q: But you have bought a lot of real estate yourself; how come you don't buy those stocks?
A: I have not bought any real estate. I bought a house and office.
Q: Commercial real estate you have dabbled in the past, haven't you?
A: Not at all. That's not my cup of tea.
Q: So you would not be queuing to buy DLF, would you?
A: No I wouldn't.
Q: Why - valuations or innate distrust of the business?
A: I would say valuations, more than anything else.
Q: So you have had a look at it?
Q: You don't agree with those - slight premium to land bank - those kinds of valuation models at all?
A: Why should I go and buy DLF, I will buy the land only.