News Digest

02 December 2017
DLF promoters to infuse Rs 11,250 cr; board okays

Realty major DLF''s board today approved issue of debentures and warrants to promoters in lieu of Rs 11,250 crore equity infusion into the company, as part of its objective to reduce net debt significantly. The board also gave its nod to selling shares through public issue or private placement to institutional investors. The company is estimated to raise more than Rs 3,500 crore through this process. In late August, the promoters had sold the entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore and proposed to invest proceeds into DLF. This deal included sale of 33.34 per cent stake in DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL. In a filing to the BSE, DLF today said its board has approved the preferential offer and issue of upto 37.97 crore compulsorily convertible unsecured debentures (CCDs) to the promoters for cash. The debentures would be converted into equivalent number of equity shares at Rs 217.25. That apart, the board approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into shares at the same price.

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