DLF stock gains 3% on share sale announcement
Mumbai: Shares of DLF on Thursday rose by nearly 3 percent in morning trade after the realty major announced it will issue fresh equities to dilute the promoter group holding to meet Sebi norms of 25 per cent minimum public shareholding.
Despite a weak opening, shares of the company bounced back as the trade progressed and gained 2.72 per cent to Rs 276.9 on the BSE.
Similarly on the NSE, the stock jumped 2.51 per cent to Rs 276.90.
At present, promoters hold 78.58 per cent stake in the company and offer of fresh shares would help them in reducing their stake to below 75 per cent.
As per sources, DLF is likely to offer over eight crore shares, which will be worth Rs 2,100 crore at current market price.
In a filing to the BSE, DLF had said the board of directors, in its meeting held yesterday, approved offer of shares via Institutional Placement Programme (IPP) or other routes.
"...To achieve the minimum public shareholding, (board) approved offering of equity shares by way of Institutional Placement Programme (IPP) and/or any other method prescribed and approved by SEBI...," the filing said.
As per market regulator Sebi norms, private sector firms should have a minimum 25 per cent public shareholding by June this year.
The board approved convening of shareholders meet on April 4 to obtain their approval. It also formed an "Equity Issuance Committee" of the board to take necessary steps.
The funds raised would be used to trim debt that stood at Rs 21,350 crore at the end of December, 2012.
In the broader market, Sensex was trading down by 11.01 points at 19,241.60 at 1100 hours.