Realty major DLF's board on Friday approved the issue of debentures and warrants to promoters in lieu of Rs 11,250 crore equity infusion into the company, as part of its objective to reduce net debt significantly.
That apart, the board approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into shares at the same price.
Upon completion of the issue of debentures and warrants and conversion into equity shares, "the total additional amount of promoter/promoters groups equity contribution to the company will be approximately Rs 11,250 crore."
The board also approved the offer and issue up to 17.30 crore equity shares to eligible investors, in one or more tranches, in India or overseas, by way of public issue or a private placement or a qualified institutional placement.
It approved an increase of authorised share capital of the company from Rs 500 crore to Rs 1,000 crore.
The board also approved the appointment of Ashok Kumar Tyagi and Devinder Singh as Whole-Time Directors (WTDs) of the company for a period of five years with effect from December 1, 2017.
Indias largest realty firm DLF Ltd plans to raise around Rs 3,500 crore through sale of shares to institutional investors, sources had said.
Infusion of capital by promoters will lead to increase in promoters' stake in DLF to more than 75 per cent. So, the company plans to launch a QIP or public issue to maintain the minimum public shareholding limit of 25 per cent.
DLF will use the funds to reduce net debt, which has surged to nearly Rs 27,000 crore because of huge demand slowdown in the real estate sector since last many years.