DLF to raise upto Rs 1,888 cr via share sale, fixes price band

DLF to raise upto Rs 1,888 cr via share sale, fixes price band New Delhi: Realty major DLF will raise up to Rs 1,888 crore through sale of 8.1 crore equity shares to institutional investors on May 14.

The issue of shares via institutional placement programme (IPP) is being done to meet market regulator SEBI's guideline on minimum 25 per cent public shareholding by June 30 for private sector listed companies.

The company has fixed a price band of Rs 222-233 per share for its 8.1-crore share offer.

In a filing to the BSE, DLF said "the Equity Issuance Committee of the Board of Directors...Has finalised May 14, 2013 as the issue opening and closing date.

"Further, the floor price has been finalised at Rs 222 per equity share with price band of Rs 222 to Rs 233 per equity share," the filing added.

Last month, DLF's shareholders approved the sale of fresh equity shares to meet market regulator Sebi's public shareholding norms. Promoters have 78.58 per cent stake in the company as on March 31.

As per the red herring prospectus (RHP) filed with SEBI, DLF will issue up to 8,10,18,417 equity shares of face value of Rs 2 each through the IPP.

It has appointed 8 bankers for the issue -- Standard Chartered Securities (India), Deutsche Equities India, DSP Merrill Lynch, J. P. Morgan India, CLSA India, HSBC Securities and Capital Markets (India), Kotak Mahindra Capital Company, UBS Securities India.

In the IPP document, DLF said that it intends to use the net proceeds of the issue for reducing debt and working capital requirement among other purposes. The net debt stood at Rs 21,350 crore at the end of the 2012 calendar year.

Share price of the company fell by 0.29 per cent to Rs 236.70 yesterday on BSE. The company's market capitalisation stands at Rs 40,208 crore.

DLF has been selling its non-core businesses since last couple of years to focus on core business and cut huge debt. It is targeting to pare net debt by half over the next three years to Rs 10,000-11,000 crore.

In past one year, DLF has been able to divest its three major assets- land parcel in Mumbai, hospitality chain Amanresorts and wind energy.

Last month, it had sold wind turbine projects in Tamil Nadu and Rajasthan for Rs 241 crore to two separate entities. Before that, the company had sold 150MW wind mill in Gujarat to Bharat Light and Power for Rs 282.30 crore in January 2012.

In August last year, DLF sold a 17-acre land in Mumbai to Lodha Developers for Rs 2,727 crore, while in December 2012, it announced sale of Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore.

PTI