DLF gets shareholders' nod for Rs5,000 cr debenture issue
12 September 2014
DLF Ltd, India's largest real estate developer, said it would raise up to Rs5,000 crore through private placement of non-convertible debentures (NCDs), as shareholders have approved a proposal to this effect.
Last month, DLF had sought shareholders' consent through postal ballot to authorise the board to offer NCDs (Non-Convertible Debentures) in one or more tranches up to Rs 5,000 crore through private placement on a preferential basis to augment long term resources for business needs.
In a filing with the Bombay Stock Exchange, DLF said the shareholders have approved this resolution.
The stockholders have also approved another special resolution to reduce borrowing power of the company's board to Rs30,000 crore from the earlier Rs50,000 crore.
That apart, DLF said shareholders have given their nod for making investment up to Rs20,000 crore in its subsidiaries, joint ventures and associates.
"The company operates some of its businesses through subsidiaries, joint ventures, affiliates and associates. The funding obligation of such subsidiaries, JVs and associates are funded primarily out of the company's cash-flows," DLF had said in the postal ballot notice.
DLF has a total developable potential of 307 million sq ft, of which 57 million sq ft are under construction.
DLF had posted 29 per cent fall in consolidated net profit at Rs127.77 crore during the first quarter of this fiscal, compared with Rs 181.19 crore a year-ago.
For the last fiscal, DLF had posted net profit of Rs646 crore on a turnover of Rs9,790 crore.