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Promoters infuse Rs 2,250 crore in DLF against issuance of new equity share

Business Standard:  June 28, 2019

New Delhi: Promoters of realty major DLF have infused Rs 2,250 crore in the company against issuance of new equity shares. The fresh infusion through two holding entities — Rajdhani Investments & Agencies and DLF Urva Real Estate Developers & Services — takes the promoters’ collective stake to 74.95 per cent in the company.

The Gurugram-headquartered company on Thursday informed the BSE that the current tranche of capital invested concludes the induction of capital of Rs 11,250 crore by the promoter/promoter group as planned in December 2017.

In 2017, the DLF board had chalked out a ‘game-changer’ plan, encompassing stake sale in its rental arm DLF Cyber City Developers (DCCDL) and infusing the capital in the company. In December 2017, the group had sold its entire 40 per cent in DCCDL to raise Rs 11,900 crore. This deal included the sale of a 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.

Soon after, the promoters had infused Rs 9,000 crore in DLF through issuance of compulsorily convertible unsecured debentures. They had also issued warrants, which required them to infuse another Rs 2,250 crore later.

To finish the capital infusion process, the DLF board has now allotted 138.1 million equity shares – at Rs 217.25 each — against the convertible debentures. Earlier in May, the board had issued 130 million shares at the same rate.

With the current infusion, the promoters have 268.1 million new equity shares in their possession since March 31. This raised the promoters’ holding in the firm to 74.95 per cent from 71.91 per cent at the end of the last financial year.

Now, the paid-up equity share capital of the company stands at Rs 495.06 crore comprising 247.53 crore equity shares with face value of Rs 2 each.

As on March 31, DLF had a net debt Rs 4,483 crore, though the company had said it had reduced its debt by Rs 2,741 crore in the preceding December quarter in 2018-19 by raising funds against share sell to institutional investors.

In its third major fundraising exercise since it got listed in 2007, DLF had in March raised Rs 3,173 crore by selling shares to institutional investors through a qualified institutional placement (QIP) offer. Major institutional investors who participated in QIP offer include Oppenheimer, UBS, HSBC, Marshall Wace, Myriad, Key Square, Goldman Sachs, Indus, Eastbridge, Tata Mutual Fund, and HDFC Mutual Fund.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.