Apart from the usual reasons (real estate, hot stock, land is always in demand etc etc), it’s also because DLF has structured its IPO rather interestingly:
— One can only apply for shares in multiples of ten. Investors today, in general, are bullish, and I for one am more likely to up my investment by a little. So, hypothetically, if I want to invest 20k in the share, I’m more likely to put in 22k and buy 40 shares instead of 11k for 20. From what I’ve seen, people tend to invest X amount of money, instead of buying Y number of shares in case of IPOs.
— Secondly, DLF has given investors the option of partial payment of Rs. 150 for the shares, instead of the full Rs. 550. So then I have to decide – either I can bid for (say) 20 shares for Rs. 11000, and be allotted only a fraction of that, or I can choose to bid for, say 80 shares for Rs. 44000, and expect an allotment of 20 – which is what I wanted in the first place. If more people think the way I did, expect people to be apply for more, and be alloted less.
I can only hope that some of that inflated demand finds its way to the market. 😀