DLF to raise Rs 3,000 crore via QIP once markets conditions conducive

Realty major DLF Wednesday said it would sell shares to institutional investors to raise about Rs 3,000 crore when market conditions are conducive, a senior company official said.

The company plans to issue up to 17.3 crore shares through qualified institutional placement (QIP) to raise funds, as part of its objective to become a debt-free company. Its current debt stood at Rs 7,224 crore till December 2018.

Sources had earlier said that the company plans to raise Rs 3,000-4,000 crore through QIP.

DLF will launch the QIP at an opportune time, its whole-time director and group chief financial officer Ashok Tyagi told analysts.

The company also expressed confidence that it would achieve sales booking guidance of Rs 2,250 crore as the company has achieved nearly Rs 1,800 crore sales in the first three quarters of this fiscal.

In August 2017, DLF promoters sold entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore. This deal included sale of 33.34 per cent stake in DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buy-back of remaining shares worth Rs 3,000 crore by DCCDL.

The deal concluded in December 2017. As a result, DLF stake in DCCDL increased to 66.66 per cent stake from 60 per cent, while GIC has the balance 33.34 per cent stake in the joint venture firm.

Post this transaction, DLF promoters K P Singh and family infused Rs 9,000 crore in the company and would pump in Rs 2,250 crore more.

DLF has made preferential allotment of compulsorily convertible debentures (CCDs) and warrants to the promoters against infusion of funds.

As infusion of funds by promoters will lead to increase in their shareholdings beyond permissible limit of 75 per cent, the company plans to launch QIP and maintain minimum public shareholding norm of 25 per cent.