Realty major DLF today said its promoters have infused Rs 9,000 crore in the company and the amount will be utilised to reduce debt significantly. DLF, the country’s largest real estate firm, has issued compulsorily convertible debentures and warrants to promoters entities in lieu of this investment. Earlier this week, DLF promoters concluded the sale of 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore. This deal included sale of 33.34 per cent stake in DCCDL to GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL. DLF’s debt stood at nearly Rs 27,000 crore at the end of the second quarter of the current fiscal.
In a filing to the BSE, DLF today informed that the board has allotted to promoters nearly 38 crore compulsorily convertible unsecured debentures (CCDs) of Rs 217.25 each on a preferential basis. The board approved issue of nearly 13.81 crore warrants of Rs 217.25 each as well. “The company has received Rs 8,250 crore towards allotment of fully-paid CCDs and Rs 750.10 crore towards 25 per cent of the warrants issue price, aggregating amount Rs 9,000.10 crore towards allotment of CCDs and warrants,” the filing said.
The conversion of CCDs and exercise of warrants would be undertaken in a manner that is in compliance with the minimum public shareholding norms.
When contacted, DLF’s newly appointed group CFO Saurabh Chawla said the promoters have invested Rs 9,000 crore today and another Rs 2,250 crore would be infused in the next one year. “All capital being raised will be utilised towards debt reduction,” he told PTI. Upon completion of the issue of debentures and warrants and conversion into equity shares, DLF had said that “the total additional amount of promoter/promoters groups equity contribution to the company will be approximately Rs 11,250 crore.” DLF also plans to raise over Rs 3,500 crore through qualified institutional placement.
The board had approved the offer and issue up to 17.30 crore equity shares to eligible investors, in one or more tranches, in India or overseas, by way of public issue or a private placement or a qualified institutional placement.