New Delhi: India’s largest listed developer, DLF Ltd, aims to raise Rs100 billion ($2 billion) over the next three years from asset sales as the cash-strapped builder strives to cut its debt.
“This includes the Rs55 billion we have talked about and in the coming three years we will be raising Rs45 billion more,” Sanjey Roy, a senior general manager, said.
DLF had said in an analyst presentation earlier this month it had net debt of Rs139.58 billion at the end of March.
It planned to repay Rs75 billion by selling non-core assets such as its wind power unit and from part collection of the money owed to it by a property trust, DLF Assets Ltd.
On Wednesday, DLF’s founders, K.P. Singh and family, raised $783 million through a share sale, mainly to inject capital into the property trust, which owes DLF Rs49 billion.
DLF has been hit by high debt and declining profits amid a property market downturn. It had been seeking funds after a planned Singapore listing of its property trust was shelved last year following a global equities slide.
Shares in DLF, whose market value has plunged to $8 billion from $23 billion at their peak a year ago, were up 6.8% at Rs248.25 by 2:35pm, outperforming a broader market that was down 0.8%.