Realty major DLF has raised Rs 1,000 crore through non-convertible debentures, company’s first capital market issuance since SAT relief, as a part of its strategy to boost internal cash flows.
In a filing to BSE, DLF said that the company yesterday “allotted 12.25 per cent privately placed fully-paid non-convertible debentures of a principal amount of Rs 1,000 crore, redeemable for cash at par in separate series within a period of 5 years from the date of allotment.”
This is DLF’s first capital market issuance after the Securities Appellate Tribunal (SAT) in March quashed a three-year ban imposed on the company by the Securities and Exchange Board of India (Sebi).
These debentures are proposed to be secured by certain immovable assets of a wholly-owned subsidiary of DLF Ltd and are proposed to be listed on BSE, the realty firm added.
Since last three-four years, DLF has been raising funds through sale of non-core businesses and land parcels to cut debt and boost cash flows for meeting construction costs. It has raised over Rs 10,000 crore through these measures.
The company has already exited from hospitality, cinema and insurance businesses. It also sold a big-ticket land parcel in Mumbai.
DLF’s net debt stood at Rs 20,965 crore as on March 31. Of the total debt, about Rs 14,000 crore pertains to rental business, and the rest towards development arm.
In view of sluggish housing sales in last few years, DLF is also in the process of raising over Rs 3,000 crore through private equity at project levels to boost cash flows.
Sources had earlier said that the company is in advance stage of talks with Singapore governmentu2019s investment arm GIC to sell stake in a new housing project located in the national capital.
The company is also planning to launch two Real Estate Investment Trusts (REITs) this fiscal to monetise its rent- generating commercial assets.
DLF has a land bank of about 300 million sq ft of which nearly 50 million sq ft is under construction.
Its net profit fell by 16 per cent to Rs 540.24 crore in 2014-15 from Rs 646.21 crore in the previous year. Total revenue stood at Rs 8,168 crore in 2014-15 fiscal, down by 17 per cent from Rs 9,790 crore in the previous year.