1. DLF wait to liquidate assets gets longer

DLF wait to liquidate assets gets longer

Appeals court tells realty firm to file affidavit on fund requirement to secure interim relief

Mumbai | Updated: November 23, 2014 11:27 PM

DLF’s wait to liquidate its MF assets just got a little longer after an appeals court directed the company to file an affidavit by November 3 and adjourned the matter to November 5.

The Securities Appellate Tribunal (SAT) said that DLF will likely get an interim relief from the Securities and Exchange Board of India (Sebi) ruling if the company submitted a detailed proposal of funds it may require by December 31. The three-member Bench said that it would examine the request for redemptions and give approval next week, if there was no objection from the markets watchdog.

SAT drew a detailed timeline for the case and has set November 30 as the deadline for Sebi to file an affidavit on the matter. The three-member Bench has set December 8 as the deadline for the real estate developer to submit its rejoinder against an affidavit, challenging the three-year ban imposed by the market regulator on DLF for alleged irregularities in the 2007-IPO through which the company raised Rs 9,187 crore — the biggest public offering in the country at that time.

The tribunal will begin final hearing in the matter on December 10. The ruling is likely the same day.

In its appeal, DLF said it had more than Rs 2,000 crore invested in mutual funds, which it plans to redeem after the Sebi ban. As part of the process, the tribunal also needs to decide if the company would be allowed to raise Rs 5,000 crore in non-convertible debentures (NCDs). DLF counsel said that Sebi’s ruling should not apply to the Rs 5,000-crore fund raising via NCDs as that was approved by its board prior to the regulator’s ban.

DLF’s current debt stands at over Rs 19,000 crore as of quarter ended June 2014. the company which owed lenders Rs 21,350 crore at the end of December 2012 had sold off three of its non-core assets — a premium land parcel in central Mumbai’s Lower Parel, luxury hotel chain Aman Resorts and its wind energy business — picking up Rs 4,889.2 crore.

The realty major raised Rs 1,863 crore through an institutional placement programme (IPP) in May last year to comply with Sebi’s norms of minimum 25% public shareholding in listed companies.

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