You are here: Home » Companies » News
Business Standard

DLF promoters to infuse Rs 11,250 cr; board okays QIP

Collected sum to help firm reduce its debts

Press Trust of India  |  New Delhi 

DLF

Realty major DLF's board on Friday approved the issue of and warrants to promoters in lieu of Rs 11,250 crore into the company, as part of its objective to reduce net debt significantly.

The board also gave its nod to selling through public issue or private placement to The company is estimated to raise more than Rs 3,500 crore through this process.

In late August, the promoters had sold the entire 40 per cent stake in rental arm Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore and proposed to invest proceeds into

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

In a filing to the BSE, on Friday said its board has approved the preferential offer and issue of up to 37.97 crore compulsorily convertible unsecured (CCDs) to the promoters for

The would be converted into an equivalent number of equity at Rs 217.25.

That apart, the board approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into at the same price.

Upon completion of the issue of 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 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 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 Ltd plans to raise around Rs 3,500 crore through sale of to institutional investors, sources had said.

Infusion of capital by promoters will lead to increase in promoters' stake in 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.

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.

First Published: Fri, December 01 2017. 20:07 IST
RECOMMENDED FOR YOU