New Delhi: Realty major DLF has raised Rs1,863 crore through issue of over 8.1 crore fresh shares to institutional investors, enabling the company to dilute promoters stake to 75% in line with Sebi’s minimum public shareholding norms.

The funds will be utilised primarily to reduce debt, which stood at Rs21,350 crore as on 31 December 2012.

DLF’s Institutional Placement Programme (IIP), launched on 14 May, was over-subscribed 1.82 times with the company receiving bids for over 14.81 crore shares. In a filing to the BSE late on Wednesday, DLF said that the “Equity Issuance Committee of the Board of Directors of the company finalised the issue price of Rs230 per equity share."

DLF, country’s largest realty firm, had fixed a price band of Rs222-233 per share for the issue.

Share price of the company rose by 0.5% at BSE to Rs242.85 apiece.

The IPP was launched to meet market regulator Sebi’s norm on minimum 25% public shareholding by 30 June for private sector listed companies.

As on 31 March, the promoters of the company have 78.58% stake.

This is the third major fund raising exercise by the company.

DLF had launched Initial Public Offer (IPO) at Rs525 a share to raise over Rs9,000 crore in 2007, while promoters had sold 9.9% stake in 2009 for Rs3,860 crore.

In the offer prospectus, DLF had said that it will use the net proceeds of the issue for reducing debt and working capital requirement among other purposes.

DLF has been selling its non-core businesses since 2010 to focus on core business and cut huge debt.

It has raised about Rs8,000 crore through this process so far.

The company plans to cut debt by half over next three years to about Rs11,000 crore.