Realty major DLF’s board of directors will meet on Tuesday to consider issues of over eight crore fresh equity shares, worth more than Rs. 2,000 crore, to meet SEBI’s guidelines on minimum public shareholding.
According to sources, DLF is likely to offer over 8 crore of shares, worth more than Rs 2,000 crore at current market price, through institutional placement programme (IPP) route.
The issue is likely to hit market next month.
As per market regulator SEBI norms, private sector firms should have a minimum 25 per cent public shareholding by June this year.
In a filing to the BSE, DLF informed that “a meeting of the board of directors of the company will be held on March 6, to consider offer of securities and all related actions thereto... for achieving the minimum public shareholding.”
The board would consider calling of an extra ordinary general meeting on April 4, to seek shareholders approval for the above purpose, it added.
The fresh equity of shares would lead to reduction in promoters stake to below 75 per cent from the present 78.58 per cent. The funds raised would be used to trim debt, which stood at Rs 21,350 crore at the end of December 2012.
Shares of DLF were trading 1.93 per cent higher at Rs 255.55 on the BSE in afternoon trade. The company’s market cap is over Rs 43,000 crore.
DLF has been selling its non-core businesses since the last couple of years to focus on core real estate business and cut its huge debt.
In August last year, DLF had sold a 17-acre land in Mumbai to Lodha Developers for Rs 2,727 crore. In December, it had announced the sale of Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore.
In the current quarter, DLF sold wind turbine business in Gujarat to Bharat Light & Power for Rs 282.30 crore.
Apart from 150-MW Gujarat unit, DLF has wind turbines in Rajasthan (34 MW), Tamil Nadu (33 MW) and Karnataka (11 MW) and the company is in advanced stages of negotiations to sell these as well.
DLF, the country’s largest real estate developer, had reported 10.23 per cent rise in consolidated net profit at Rs 284.80 crore for the quarter ended December 31, 2012 compared with Rs 258.35 crore in the year-ago period.
Income from operations declined to Rs 1,310.04 crore in the third quarter compared with Rs 2,034.37 crore in the same period of 2011-12.
DLF expects the debt to reduce at Rs 19,000 crore level by end of this fiscal from proceeds of non-core assets sale.