NEW DELHI: Infrastructure major DLF has received a Rs 9,000-crore capital infusion from its promoters, with the company stating that the capital will be used to ‘significantly’ pare down debt. DLF informed the stock exchanges on Friday that its promoters and promoter entities had been issued compulsorily convertible debentures (CCDs) and warrants in lieu of the investment.
The infusion comes in the wake of the closure of the GIC deal, which saw DLF’s promoters sell 33.34 per cent of their stake in its rental arm — DLF Cyber City Developers (DCCDL) — to GIC for Rs 8,900 crore. Simultaneously, DCCDL also executed a buyback of 6.66 per cent stake from the promoters for Rs 3,000 crore. Both deals together have resulted promoters’ shareholding in DCCDL pared down by 40 per cent, raising them around Rs 11,900 crore.
“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 Rs 9,000.10 crore towards allotment of CCDs and warrants,” DLF said, adding that the board has allotted nearly 38 crore unsecured CCDs of Rs 217.25 each on a preferential basis to promoters. The board also approved the issue of nearly 13.81 crore warrants of Rs 217.25 each as well.
Upon completion of the debenture and warrant issues, and their conversion into equity shares, “the total additional amount of promoter/promoters groups equity contribution to the company will be approximately Rs 11,250 crore”.
According to company sources, all of the capital raised through these measures are to be used in paring down the substantial debt the company has racked up. As on September 30, , the company’s cumulative debt had stood at Rs 26,800 crore, having risen by Rs 900 crore in the July-September quarter alone.