DLF expects an infusion of Rs 13,000 crore into the company

Vastavam web:  India’s largest realty firm DLF today said it expects an infusion of Rs 13,000 crore into the company, a better part from promoters, by December and the amount will be utilised for reducing its debt substantially.The company expects over Rs 10,000 crore from promoters and another Rs 3,000 crore from institutional investors, according to sources.DLF had a net debt of nearly Rs 26,000 crore at the end of the June quarter and out of that Rs 5,500 crore pertained to its rental arm DLF Cyber City Developers Ltd (DCCDL).This deal, the biggest in the country’s realty space, included sale of 33.34 per cent stake to Singapore’s sovereign wealth fund GIC for Rs 8,900 crore and a buyback of remaining shares worth Rs 3,000 crore by DCCDL.
Post this deal, DLF will have 66.66 per cent stake in the DCCDL and GIC 33.34 per cent stake in the joint venture.”Gross proceeds to the promoters from the transaction would be Rs 11,900 crore. The net proceeds to the promoters are estimated to be in excess of Rs 10,000 crore post applicable taxes,” DLF said in an analyst presentation.According to the presentation, DLF expects an investment to the tune of Rs 13,000 crore into the company which will help it in reducing the debt of residential vertical significantly.
While promoters are expected to invest about Rs 10,500 crore into the company, DLF expects to raise another Rs 3,000 crore from institutional investors through Qualified Institutional Placement (QIP), market sources said.DLF will have to hit capital market as promoters’ shareholding will cross the minimum threshold of 75 per cent post infusion of fund by them.