DLF welcomes SAT order;co says board to decide on fund-raising

Realty major DLF today hailed the Securities Appellate Tribunal order quashing the 3-year market ban imposed by SEBI on it and said the board will decide on the fund raising plan through REITs and other securities.
India's largest realty firm has already announced plans to list two Real Estate Investment Trusts (REITs) for its rent- yielding commercial assets. It is also ready to launch the Commercial Mortgage Backed Securities (CMBS) for its SEZs to raise about Rs 3,600 crore and was waiting for the SAT order.
"DLF Ltd is yet to receive the SAT judgement, which has set aside the SEBI order against the company. DLF and its Board were guided by and acted on the advice of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents in 2007. We have full faith in the judicial system and we always abide by its order," the company said in a statement.

When asked about the fund raising plans after quashing of the SEBI order, DLF group Executive Director Rajeev Talwar said: "We are yet to receive the full copy of the order. After that, our legal counsel and experts will take the matter before the board of director for the course of action to be followed".
Last month, DLF had said it will form two REIT platforms to tactically monetise almost 30 million sq ft of commercial assets, thereby increasing cash flows and reducing debt.
It further said that one REIT platform would be for office and other for retail asset. The company is in talks with both strategic and financial investors interested in partnering with the company for REIT.

The relief from the SAT could also enable the company to convert Compulsorily Convertible Preference Shares (CCPS) held by its promoters as the deadline for same is March 2015.

CCPS have to be converted into ordinary shares after a predetermined date.
Post conversion of CCPS in equity shares, DLF promoters will have 40 per cent economic interest in DLF's commercial arm DLF Cyber City.
In late 2009, DLF had announced merger of its subsidiary DLF Cyber City Developers with promoters firm Caraf Builders & Constructions, the holding company of DLF Assets Pvt Ltd.
DLF Cyber City Developers had then issued CCPS worth Rs 1,597 crore to the promoters.