DLF board okays plan to infuse Rs 11,250-cr equity

Published On: 02, Dec 2017 | Source: business-standard.com

The board of the country’s biggest real estate company, Limited, on Friday approved the issue of debentures and warrants to promoters in lieu of a Rs 11,250-crore equity infusion. This is part of DLF’s objective to reduce net debt. The board also cleared the raising of around Rs 3,500 crore via sale of shares to institutional investors. The proceeds will be used to reduce its net debt. 

In late August, DLF’s promoters had sold their entire 40 per cent stake in rental arm Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore and had proposed investing the proceeds in This deal included sale of a 33.34 per cent stake in DCCDL to Singapore’s sovereign wealth fund GIC for Rs 8,900 crore and buyback of the remaining shares worth Rs 3,000 crore by DCCDL.

In a filing to the BSE, said its board had approved the preferential offer and issue of up to 379.7 million (CCDs) to the promoters for cash.

The debentures will be converted into an equivalent number of equity shares at Rs 217.25.

That apart, the board approved the preferential issue of up to 138,089,758 warrants to the promoters being convertible into shares at the same price.

Upon completion of the issue of debentures and warrants and conversion into equity shares, “the total additional amount of promoter/promoter group’s equity contribution to the company will be approximately Rs 11,250 crore”. The board also approved the offer and issue of up to 173.0 million equity shares to eligible investors in India or overseas, by way of public issue or a private placement or a qualified institutional placement.