DLF to launch Rs 2,000-cr IPP in early May

DLF promoters' holding is expected to come down from 78% at present to 75% after the IPP

DLF, India's largest realty developer by revenues, plans to raise Rs 2,000 crore through the institutional placement programme (IPP) route.

The company will launch the IPP in a week or two to sell 80 million shares to qualified institutional buyers, making it the biggest IPP ever, said an executive in the know.

DLF's IPP is meant to meet the guidelines of the Securities and Exchange Board of India (Sebi), which mandated all private-listed companies to have at least 25 per cent public shareholding. DLF promoters' holding is expected to come down from 78 per cent at present to 75 per cent after the IPP.

This may further help the company to bring down its debt level, which was pegged at Rs 21,350 crore in the October-December 2012 quarter.

According to sources close to DLF, the company will watch the price movement before taking a final call on price. According to IPP rules, the firm can either sell shares at the current market price or 5 per cent discount to the market price.

Sources said the company is yet to file with Sebi for the share sale. A company spokesperson declined to comment on the matter.

"We already have shareholders' approval. We will observe the market conditions before launching it. In any case, it has to be completed by June 3," said sources.

The company got shareholders' approval for IPP on April 4. Sebi has given time till June 2013 for private companies to meet the minimum public shareholding norm.

DLF shares dipped 2.21 per cent to close at Rs 237.15 on Friday.

Already, five companies including Godrej Properties, Prestige Estates, Godrej Industries, Timken India, and Mahindra Holidays have come out with IPP after Sebi announced the guidelines.