INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Real estate major DLF Limited is likely to launch its sale of shares of about Rs 3,000 crore to qualified institutional investors
The proposed issue is expected to be priced a touch below Rs 180 per share, two people familiar with the development told ET.
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
The proposed issue price will be slightly lower than last closing price of Rs 189.40 on the BSE on Monday.
At this price, the proposed issue
size will be a little more than Rs 3,000 crore
This will help the company substantially reduce its debt
(DCCDL) for Rs 11,900 crore in August 2017
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 buyback of
remaining shares worth Rs 3,000 crore by DCCDL.
The deal concluded in December 2017
As a result, DLF stake in DCCDL went up 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.
After this transaction, promoters 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
This has resulted in promoter shareholding going beyond the permissible limit of 75 per cent
The proposed QIP is aimed at maintaining minimum public shareholding norm of 25 per cent.
DLF group CFO Ashok Tyagi in an interview had said
the QIP proceeds and further infusion of Rs 2,500 crore from promoters against issue of warrants would help the company significantly reduce
debt that stood at around Rs 7,200 crore as on December 31, 2018.
Moreover, the company is ready to move housing inventories worth Rs 12,500
crore which are being planned to be sold in the next 3-5 years
"We are selling Rs 600 crore worth of properties every quarter
These sale proceeds will also be utilised towards reducing debt," Tyagi had said.
