Realty major DLF today said its shareholders have approved the resolution to create charge, lien or pledge on its over 50 per cent shares in three subsidiaries, holding rental commercial assets, for raising up to Rs 7,500 crore.
Shareholders also approved another special resolution to lease and/or create charge, lien, mortgage, hypothecation, etc exceeding 20 per cent of the assets of these three subsidiaries, DLF said in a filing to the BSE.
These resolutions were approved by the shareholders at the company’s annual general meeting held on August 28.
Through a notice to the AGM, DLF had sought shareholders’ nod “to create charge, lien, pledge and other encumbrances of any nature/kind, exceeding 50 per cent of the company’s shareholding in the material subsidiaries — DLF Cyber City Developers Ltd, Caraf Builders & Constructions Pvt Ltd and DLF Assets Pvt Ltd.”
DLF holds 100 per cent equity shareholding in these three subsidiaries, which are in the business of developing and leasing of office space, IT Park/SEZ and retail properties.
Its rental business, with leasable area of about 29.4 million sq ft, yielded annuity income of about Rs 2,200 crore during last fiscal.
The creation of charge, lien and pledge could be in one or more tranches “to secure the amount raised by the company and/or such material subsidiaries… from the lenders provided that the amount borrowed and outstanding at any point of time shall not exceed Rs 7,500 crore”, the notice had said.
DLF had also sought shareholders approval to lease and/or create charge, lien, mortgage, hypothecation, etc exceeding 20 per cent of the assets of these three subsidiaries.
The company’s net debt stood at Rs 20,965 crore at the end of the last fiscal, of which about Rs 14,000 crore pertained to rental business (RentCo) and the rest to development arm (DevCo).
Its net profit declined by 16 per cent to Rs 540.24 crore in 2014-15 from Rs 646.21 crore in the previous year. Total revenue fell by 17 per cent at Rs 8,168 crore in 2014-15 fiscal from Rs 9,790 crore in the previous year.