With Sebi banning real estate player DLF from accessing the capital markets for three years following its failure to make material disclosures on related-party transactions in its IPO prospectus, the DLF stock crashed 28.46% on Tuesday, reports fe bureau in Mumbai. While the fall wiped out R7,440 crore of market capitalisation, analysts were concerned the firms balance sheet would continue to remain highly geared unless it was able to sell some assets. Total debt at the end of March 2015 is estimated at R20,880 crore. Moreover, the ban would effectively rule out any REITs or marketable securities. Edelweiss wrote in a note that refinancing the total non-bank debt, which amounted to 45% of the firms FY14 net debt of close to R20,000 crore, may come under pressure. The Gurgaon-based companys free cash flows are estimated to be R2,100 crore in FY15, down from R3,861 crore last year.
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