27 May 2019 | 12:25 AM


DLF raises Rs 3173 cr via QIP by selling shares to institutional investors
  DLF Ltd. | 24 May 2019 | 03:58 PM
Published on 03-29-2019
Realty major DLF on Friday said it has raised Rs 3173 crore by selling shares to institutional investors through its QIP offer.

DLF the country`s largest real estate firm in market value would utilise this amount mainly to prepay debt which stood at around Rs 7000 crore at the end of December 2018.

On Monday the company had launched its qualified institutional placement (QIP) issue offering up to 17.3 crore shares to investors. The issue closed Thursday.

In a regulatory filing DLF Friday informed that the Securities Issuance Committee has approved the allotment of 17.3 crore equity shares to eligible qualified institutional buyers at an issue price of Rs 183.40 per share aggregating to about Rs 3172.82 crore.

Sources on Tuesday had said that DLF`s QIP issue has been oversubscribed by two times enabling the company to raise around Rs 3200 crore.

Major institutional investors who participated in QIP offer include Oppenheimer UBS HSBC Marshall & Wace Myriad Key Square Goldman Sachs Indus Eastbridge Tata Mutual Fund and HDFC Mutual Fund sources had said.

This is the third major fundraising from DLF. In 2007 DLF raised about Rs 9200 crore through an initial public offering (IPO). In 2013 the company had raised nearly Rs 1900 crore through an institutional placement programme.

Meanwhile the committee Friday also approved the conversion of 24.97 crore compulsory convertible debentures (CCDs) issued to promoters entities into equal number of equity shares at Rs 217.25 per share.

In December 2017 the company`s board had allotted on preferential basis 37.97 crore CCDs and nearly 13.81 crore warrants to promoters entities against their infusion of funds in DLF.

DLF`s group Chief Financial Officer Ashok Tyagi recently said the QIP proceeds and further infusion of Rs 2500 crore from promoters against the issue of warrants would help the company to significantly reduce its debt.

DLF promoters K P Singh and family have already infused Rs 9000 crore in the company and would pump in Rs 2250 crore more. In lieu of this fund DLF had issued CCDs and warrants to the promoters.

As infusion of the fund by promoters could have led to an increase in their shareholdings beyond permissible limit of 75 per cent the company planned QIP to maintain minimum public shareholding of 25 per cent in a listed entity.

In August 2017 the promoters had sold the entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11900 crore and infused bulk of this amount in the company to cut net debt.