DLF's board approves share sale

DLF’s board of directors today approved a plan to sell shares, either through an institutional placement or other methods, to reduce minimum public shareholding in the company in line with Securities and Exchange Board of India (Sebi) guidelines.

According to Sebi, all listed companies should reduce promoter shareholding to 75 per cent by June, as minimum public shareholding should be maintained at 25 per cent. Currently, promoter shareholding in DLF stands at 78.58 per cent.

A decision was also taken to form an ‘equity issuance committee’ to take the steps required to carry out the share sale, the company said in a filing to the BSE. The board also decided to seek shareholder approval for the share sale, an extraordinary general meeting would be held on April 4.

It is expected the company would issue 80 million shares, estimated at Rs 2,000-2,500 crore.

DLF has been selling non-core assets.

In August 2012, it sold land in Mumbai to the Lodha Group for about Rs 2,700 crore.

In December, it sold Aman Resorts for Rs 1,650 crore.

To focus on its core real estate business, it also offloaded part of its energy business to Bharat Light & Power for Rs 282 crore. Through these steps, the company cut its net debt Rs 23,220 crore in quarter ended September to Rs 21,350 crore in the quarter ended December. By the end of first quarter 2013-14, the company plans to reduce debt to about Rs 17,000 crore.