DLF seeks nod to raise Rs 100 bn in shares

Written by Reuters | New Delhi, August 27: | Updated: Aug 27 2008, 17:27pm hrs
DLF Ltd, India's largest-listed property developer, has sought shareholders approval to raise up to 100 billion rupees ($2.3 billion) by selling shares to institutional investors.

The New Delhi-based company said in its annual report for a shareholders meeting on Sept. 30 it expected to complete the share sale within 12 months of getting shareholder approval.

"This is just an enabling resolution so that we can raise the money when we need," a DLF spokesman said.

DLF had raised $2.25 billion in its initial share sale last year. In July, the company said it would spend up to 11 billion rupees to buy back up to 22 million shares following a stock market slide.

Shares in the company were down 2.3 per cent at 486.80 rupees at 0623 GMT in a weak Mumbai market. The stock has fallen nearly 55 per cent this year, compared with about 29 per cent drop in the main BSE index.

Uncertainty in world equity markets has forced the company to shelve a planned $1.5 billion initial public offer for its property trust in Singapore.