Workers walk past a DLF Ltd. office-block construction site in Gurgaon, India.(Photographer: Pankaj Nangia/Bloomberg News)

DLF To Launch QIP When Market Conditions Are Conducive

DLF Ltd. said it would sell shares to institutional investors to raise about Rs 3,000 crore when market conditions are conducive as it looks to pare debt.

The developer plans to issue up to 17.3 crore shares through qualified institutional placement to raise funds, as part of its objective to become debt-free. Its debt stood at Rs 7,224 crore as of December.

DLF will launch the QIP at an opportune time, its whole-time director and group chief financial officer Ashok Tyagi told analysts today.

The company also expressed confidence that it would achieve sales booking guidance of Rs 2,250 crore as the company has achieved nearly Rs 1,800 crore sales in the first three quarters of this fiscal.

In August 2017, DLF promoters sold entire 40 percent stake in rental arm DLF Cyber City Developers Ltd. for Rs 11,900 crore. This deal included sale of 33.34 percent stake in the company to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buy-back of remaining shares worth Rs 3,000 crore by the subsidiary.

After the deal was completed in December 2017, DLF’s stake in the rental arm increased to 66.66 percent from 60 percent, while GIC has the balance 33.34 percent in the joint venture.

Post this transaction, DLF promoters KP Singh and family infused Rs 9,000 crore in the company and would pump in Rs 2,250 crore more.

DLF has made preferential allotment of compulsorily convertible debentures and warrants to the promoters against infusion of funds. As infusion of funds by promoters will lead to increase in their shareholdings beyond permissible limit of 75 percent, the company plans to launch QIP and maintain minimum public shareholding norm of 25 percent.