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DLF calls board meeting on Dec 1 to approve QIP, warrants issue

DLF is required to launch QIP and also issue of warrants or debentures because of proposed infusion of about Rs 10,500 crore by promoters

Press Trust of India  |  New Delhi 

DLF calls board meeting on Dec 1 to approve QIP, warrants issue

India's largest realty firm has called a board meeting on December 1 to approve its proposals to issue equity shares to institutional investors and or debentures to

is required to launch (qualified institutional placement) and also issue of or debentures because of proposed infusion of about Rs 10,500 crore by into the company.


Infusion of capital by would lead to increase in stake in to more than 75 per cent. So, the company will have to launch a to maintain the minimum public shareholding limit of 25 per cent.
 
In a regulatory filing,informed that board and audit committee will meet on December 1, 2017 to consider and approve proposal of "issuance of and/or compulsorily convertible debentures on preferential basis" to

The board will also consider and approve proposal of "issuance of equity sharesunder Qualified Institutions Placement (QIP)" andincrease in authorised share capital of the company.

The board decision would be subject to the approval of the shareholders.

In late August, promoterssold the entire 40 per cent stake in its rental arm Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore.

This deal included sale of 33.34 per cent stake in DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 croreby DCCDL.

would infuse the net proceeds from this deal, estimated at about Rs 10,500 crore into

expects to raise another Rs 3,000 crore from proposed QIP, taking the total likely infusion in the company to Rs 13,500 crore.

The realty major would use this fund to reduce its net debt, which has surged to nearly Rs 27,000 crore because of huge demand slowdown in the real estate sector from last many years.

Post GIC deal, stake in DCCDL, which holds bulk of the commercial assets with annual rental income of over Rs 2,500 crore,will increase from 60 per cent to 66.66 per cent.

expects the sale of its stake to GIC to be concluded by December and infusion of proceeds into the company by February 2018.

The deal has been approved by DLFs public shareholders as well as fair trade regulator CCI.

"We are hopeful of concluding this deal and subsequent infusion of funds into within this fiscal," DLF's Senior Executive Director (Finance) Saurabh Chawla had said recently.

The will receive the proceeds this calendar year and will infuse funds into by February 2018, he had said.

shares were trading 0.72 per cent down at Rs 228.55 on BSE in morning session.

First Published: Wed, November 29 2017. 11:38 IST
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