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Business News/ Markets / Stock Markets/  DLF plans to raise around 3,000 crore through QIP

DLF plans to raise around ₹3,000 crore through QIP

DLF will sell 173 million shares through the QIP route at a floor price of ₹193.01 per equity share
  • The money raised will be used for debt servicing, besides other general corporate purposes, says DLF
  •  (Photo: Mint)Premium
    (Photo: Mint)

    MUMBAI : Mumbai: DLF Ltd, India’s largest real estate firm by market value, announced Monday plans to raise around 3,000 crore by selling shares to institutional investors. In a filing to the BSE, the company said it will sell 173 million shares through the qualified institutional placement (QIP) route at a floor price of 193.01 per equity share.

    The QIP was approved by its board on 12 December.

    The money raised will be used for prepayment and repayment of loans, besides other general corporate purposes as per the growth and business requirements, the filing said. The company said it may also offer a discount of not more than 5% on the floor price in the QIP.

    DLF’s group CFO Ashok Tyagi had earlier announced that the company plans to be debt-free by the end of this fiscal year through a capital infusion of 2,250 crore from promoters and proposed sale of shares to institutional investors.

    As of 31 December, 2018, DLF’s net debt stood at around 7,224 crore. In August 2017, the DLF promoters had sold a 40% stake in DLF Cyber City Developers Ltd (DCCDL), the rental arm of the company, to Reco Diamond, an affiliate of GIC Real Estate, Singapore, for a gross value of 11,900 crore.

    After the deal, DLF’s stake in DCCDL had increased to 66.66% from 60%, while GIC held the balance 33.34% in the joint venture firm. Proceeds of the stake sale were used to reduce debt.

    n the December quarter, DLF’s net profit dropped 91.88% to 333.65 crore in the December quarter from the year-ago period. The company had attributed the drop in net profit to one-time pre-tax gain of 8,569 crore in the corresponding quarter a year ago, due to restatement of DLF’s investment in DLF Cyber City, as the latter was accounted as a joint venture instead of a subsidiary.

    On Monday, DLF shares fell 3.49% to 189.40 apiece on the BSE while the benchmark Sensex shed 0.93% to end the day at 37,808.91 points.

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    Published: 25 Mar 2019, 07:02 PM IST
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