DLF share sale subscribed 2 times; raises Rs 1.8k cr

Realty major DLF Ltd today sold 81 million fresh shares to investors through an institutional placement programme (IPP) to raise between Rs 1,799 and Rs 1,888 crore.

The share sale, priced between Rs 227 and Rs 230 a share, saw bids of about 15 million shares, nearly twice that on offer. Investment bankers handling the issue said most of the demand came around Rs 225 per share and “the company will soon take a final call ” on the pricing.

Shares of DLF today closed at Rs 230.30 on the BSE, down Rs 1.70, or 0.73 per cent, while the benchmark Sensex gained 0.16 per cent to 19,722.29.  

The capital raised through the IPP route will help the Delhi-based company retire some of its debt, pegged around Rs 20,000 crore. The fresh issue of shares was conducted to bring down the promoter holding from 78.58 per cent to 75 per cent to achieve the public shareholding requirement, the deadline for which expires on June 3. IPP has been the preferred route for real estate companies, including Godrej Properties and  Prestige Estates, to increase the public shareholding.

In 2007, DLF had raised Rs 9,000 crore through its initial public offering, priced at Rs 525 per share.