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DLF looks to raise up to $786M through debt securities

23 June, 2015

India’s top public listed realtor DLF Ltd is planning to raise up to Rs 5,000 crore (nearly $786 million) though issuance of non-convertible debentures, including other debt securities, on private placement basis in one or more tranches, according to a stock market disclosure.

The realtor has sought consent of its shareholders for the proposed resolutions by way of postal ballot.

Last September, the company’s shareholders had approved an existing plan to raise up to Rs 5,000 crore in one or more series/tranches. Pursuant to such resolution, the firm’s board in its meeting held on May 20, 2015 approved issuance of NCDs up to Rs 2,500 crore.

However, the shareholders resolution dated September 10, 2014 is valid only up to September 9, 2015 and hence the company requires a fresh approval of the shareholders for any issuance of NCDs post September 9, 2015.

It plans to utilise the fund through NCDs for business purposes including repayment of bank debts in order to reduce the interest cost and to reduce reliance on bank loans while tapping the corporate debt securities market.

As on March 31, 2015, DLF’s net debt was at Rs 20,965 crore as against Rs 20,336 crore as of December 31, 2014.

The debt laden firm has been looking at various routes to cut down its existing debt. It has been selling assets and has also experimented with mortgage-backed securities.

Recently, DLF agreed to sell its cinema exhibition business to PVR Ltd, the country’s largest multiplex chain operator, for Rs 500 crore ($78.1 million).

For DLF, the deal marked another sale of non-core asset to cut debt. It has sold its hospitality, insurance and wind power assets as part of divestment of non-core assets over the last two years.

In the past it has sold its hospitality and wind power assets as part of divestment of non-core assets. However, those transactions have not allowed the company to make meaningful debt reduction.

On Tuesday, shares of DLF were trading at Rs 116.15, up 1.31 per cent at 12:10 AM  on BSE in a strong Mumbai market.


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DLF looks to raise up to $786M through debt securities

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