Hello Sumant
@alex.fritzsche had an excellent answer for you and clarifies most of the issues involved. Just one note:
Typically, a DHCP DISCOVERY message is indeed multicast with a destination MAC address of FF:FF:FF:FF:FF:FF:FF. However, there are cases where DHCP OFFER which is the response to the DISCOVERY is also a broadcast. Take a look at the following post concerning this:
Even in such a case, if two clients ask for an IP address at the same time, they will be able to distinguish which DHCP response is for them and which is not from the “Client Identifier” and chaddr (Client Hardware address) fields.
I hope this has been helpful!
Laz