DLF raises Rs 1,863 cr through IPP

The funds will be utilised primarily to reduce debt, at Rs 21,350 cr as on December 31, 2012

Realty major DLF has raised Rs 1,863 crore through issue of over 81 million fresh shares to institutional investors, enabling it to dilute promoters stake to 75 per cent, in line with the Securities and Exchange Board of India's (Sebi) minimum public shareholding norms.

The funds will be utilised primarily to reduce debt, at Rs 21,350 crore as on December 31, 2012.

DLF's Institutional Placement Programme (IIP), launched on May 14, was over-subscribed 1.82 times with the company receiving bids for over 1.48 billion shares.

In a filing to the BSE late yesterday, DLF said thhe 'equity issuance committee of the Board of Directors of the company finalised the issue price of Rs 230 per equity share.'

DLF, the country's largest realty firm, had fixed a price band of Rs 222-233 a share for the issue.

The IPP was launched to meet market regulator Sebi's norm on minimum 25 per cent public shareholding by

June 30 for private sector listed companies. As on March 31, the promoters of the company had 78.58 per cent stake.

This is the third major fund raising exercise by the company. DLF had launched an Initial Public Offer (IPO) at Rs 525 a share to raise Rs 9,000 crore in 2007. Promoters had sold 9.9 per cent stake in 2009 for Rs 3,860 crore.

In the offer prospectus, DLF had said it would use the net proceeds of the issue for reducing debt and for working capital requirement, among other purposes. DLF has been selling its non-core businesses since 2010, to focus on core business and cut it huge debt. It has raised about Rs 8,000 crore through this process.