NEW DELHI: DLF, the country’s largest real estate firm in terms of market value, on Friday said it has raised Rs 3,173 crore by selling shares to institutional investors through its Qualified Institutional Placement (QIP) offer in a bid to pare its debt.
As on December 2018, total debt of the realty major stood at about Rs 7,000 crore.
In a regulatory filing on Friday, DLF said 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 about Rs 3,172.82 crore.
Major institutional investors who participated in the QIP offer include Oppenheimer, UBS, HSBC, Marshall & Wace, Myriad, Key Square, Goldman Sachs, Indus, Eastbridge, Tata Mutual Fund and HDFC Mutual Fund, sources said.
The success of the QIP, which was subscribed more than two times, also shows renewed investor interest in the company.
This is the third instance of DLF tapping the capital markets. In 2007, the real estate firm raised about Rs 9,200 crore through an initial public offering (IPO). Then in 2013, it had raised nearly Rs 1,900 crore through an institutional placement programme.
Meanwhile, the committee on 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 a preferential basis 37.97 crore convertible debentures and nearly 13.81 crore warrants to promoters entities against their infusion of funds in DLF.
The company’s group Chief Financial Officer Ashok Tyagi recently said the QIP proceeds and further infusion of Rs 2,500 crore from promoters against the issue of warrants would help the company to significantly reduce its debt.
Promoters K P Singh and family have already infused Rs 9,000 crore in the company and would pump in Rs 2,250 crore more. In lieu of this fund, DLF had issued convertible debentures and warrants to the promoters.
Convertible debentures to promoters
DLF promoters K P Singh and family have already infused I9,000 crore in the company and would pump in I 2,250 crore more. In lieu of this, DLF had issued convertible debentures and warrants to the promoters.