DLF seeks shareholders' nod to raise Rs10,000 crore in equity
27 August 2008
Mumbai: DLF Ltd, the country's largest listed property developer, has sought shareholders' approval for raising up to Rs10,000 ($2.3 billion) by selling shares to institutional investors.
DLF has called a shareholders meeting on 30 September for the purpose and expects to complete the share sale within 12 months of the approval, the New Delhi-based company said in its annual report.
DLF had raised around Rs10,000 crore ($2.25 billion) in its initial public offer last year, and in July, the company said it would buy back shares worth Rs1,100 crore to boost sagging share prices.
DLF will place a special resolution for a qualified institutional placement (QIP) before shareholders at its annual general meeting (AGM) on September 30, the company said.
Incidentally, Unitech, the country's second largest property developer, has put on hold its plans to raise nearly Rs 6,000 crore from a qualified institutional placement (QIP) due to adverse market conditions.
The QIP is expected to infuse funds for the development plans of DLF as its arm, DLF Assets, has deferred listing plans of its property trust - DLF Office Trust - on the Singapore Stock Exchange, which was expected to raise nearly Rs8,500 crore.
DLF will use cost-effective resources and work at higher levels of efficiency to beat the slump, chairman KP Singh said in the report.