27 May 2019 | 12:26 AM


DLF to raise Rs 3200 crore via QIP
  DLF Ltd. | 24 May 2019 | 03:58 PM
Published on 03-27-2019
Realty major DLF`s QIP issue has been oversubscribed by two times enabling the company to raise around Rs 3200 crore.

On Monday DLF the country`s largest real estate firm in market value had launched its qualified institutional placement (QIP) offering up to 17.3 crore shares to investors.

According to market sources the DLF`s QIP offer has been over-subscribed by two times at a price of around Rs 183-184 apiece.

Major institutional investors who have participated in QIP offer are Oppenheimer UBS HSBC Marshall & Wace Myriad Key Square Goldman Sachs Indus Eastbridge Tata Mutual Fund and HDFC Mutual Fund they added.

The QIP issue will close on Friday with allotment of shares to institutional investors.

With an aim to become a debt-free company DLF had last year announced plans to issue shares through QIP to raise funds and pre-pay loans.

DLF launched its QIP on Monday at a floor price of Rs 193.01 per equity share but said it might offer a discount of up to 5 per cent on the floor price.

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.

The DLF`s QIP comes close in the heels of successful launch of India`s first Real Estate Investment Trust (REIT) launched by Blackstone and Embassy Group to raise Rs 4750 crore.

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 significantly reduce the debt that stood at around Rs 7200 crore as on December 31 2018.

DLF promoters K P Singh and family have already infused Rs 9000 crore in the company and would pump in Rs 2250 crore more.

The company made a preferential allotment of compulsorily convertible debentures (CCDs) and warrants to the promoters against the infusion of funds.

As infusion of the fund by promoters will lead 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.

This deal included the sale of 33.34 per cent stake in DCCDL to Singapore`s sovereign wealth fund GIC for Rs 8900 crore and buyback of remaining shares worth Rs 3000 crore by DCCDL.

The deal concluded in December 2017. As a result DLF stake in DCCDL increased to 66.66 per cent stake from 60 per cent while GIC has a balance of 33.34 per cent stake in the joint venture firm.