DLF shares surge over 6% on fund-raising plans

Stocks of realty major DLF advanced by over six per cent on Wednesday, as the company seeks shareholders' approval to raise up to Rs 7,500 crore. The stock ended the day with a gain of 5.95 per cent at Rs 122 on the BSE.

During the day, it surged 9.55 per cent to Rs 126.15. At the NSE, shares of the company ended 6.12 per cent higher at Rs 122.10. The company's market valuation rose by Rs 1,221.13 crore to Rs 21,744.13 crore. In terms of volume, 2.14 million shares of the company changed hands at the BSE and over 10 million shares were traded at NSE during the day.

"DLF rallied more than nine per cent intra-day after reports that the company is looking to raise Rs 7,500 crore and is seeking approval for the same from the company's shareholders," said an expert. DLF is seeking shareholders' approval to create charge, lien or pledge on its over 50 per cent shares in three subsidiaries, which holds rental commercial assets, for raising up to Rs 7,500 crore.

In a notice to the AGM, DLF has sought shareholders' nod through special resolution "to create charge, lien, pledge and other encumbrances of any nature/kind, exceeding 50 per cent of the company's shareholding in the material subsidiaries -- DLF Cyber City Developers Ltd, Caraf Builders & Constructions Pvt Ltd and DLF Assets Pvt Ltd."

DLF holds 100 per cent equity shareholding in these three subsidiaries, which are in the business of developing and leasing of office space, IT Park/SEZ and retail properties.

The creation of charge, lien and pledge could be in one or more tranches "to secure the amount raised by the company and/or such material subsidiaries... from the lenders provided that the amount borrowed and outstanding at any point of time shall not exceed Rs 7,500 crore", the notice added.