Promoters infuse Rs9,000 crore in DLF post closure of GIC deal
New Delhi: Real estate firm DLF Ltd on Friday said its promoters had infused Rs9,000 crore in the company and the amount will be utilized to reduce debt significantly.
DLF, the country’s largest real estate firm, has issued compulsorily convertible debentures and warrants to promoters entities in lieu of this investment.
Earlier this week, DLF promoters concluded the sale of a 40% stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs11,900 crore. This deal included the sale of a 33.34% stake in DCCDL to GIC for Rs8,900 crore and buyback of remaining shares worth Rs3,000 crore by DCCDL.
DLF’s debt stood at nearly Rs27,000 crore at the end of the second quarter of the current fiscal. In a filing to BSE on Friday, DLF said the board has allotted its promoters nearly 38 crore compulsorily convertible unsecured debentures (CCDs) of Rs217.25 each on a preferential basis.
DLF’s board approved the issue of nearly 13.81 crore warrants of Rs217.25 each as well. “The company has received Rs8,250 crore towards allotment of fully-paid CCDs and Rs750.10 crore towards 25% of the warrants issue price, aggregating amount Rs9,000.10 crore towards the allotment of CCDs and warrants,” the filing said.
The conversion of CCDs and exercise of warrants would be undertaken in a manner that is in compliance with the minimum public shareholding norms.
When contacted, the company’s chief financial officer, Saurabh Chawla, said promoters invested Rs9,000 crore on Friday, and another Rs2,250 crore would be infused in the next one year. “All capital being raised will be utilized towards debt reduction,” he said. Upon completion of the issue of debentures and warrants and conversion into equity shares, DLF had said “the total additional amount of promoter/promoters groups equity contribution to the company will be approximately Rs11,250 crore.”
DLF also plans to raise over Rs3,500 crore through a qualified institutional placement.
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