DLF board all set to consider QIP, warrants issue on Dec 1
29 Nov 2017 10:39 PM IST
New Delhi: India's largest realty firm DLF has called a board meeting on December 1 to approve its proposals to issue equity shares to institutional investors and warrants or debentures to promoters.
DLF is required to launch QIP (qualified institutional placement) and also issue of warrants or debentures because of proposed infusion of about Rs 10,500 crore by promoters into the company.
Infusion of capital by promoters would lead to increase in promoters stake in DLF to more than 75 per cent. So, the company will have to launch a QIP to maintain the minimum public shareholding limit of 25 per cent.
In a regulatory filing, DLF informed that board and audit committee will meet on December 1, 2017 to consider and approve proposal of "issuance of warrants and/or compulsorily convertible debentures on preferential basis" to promoters.
The board will also consider and approve proposal of "issuance of equity shares under Qualified Institutions Placement (QIP)" and increase in authorised share capital of the company.
The board decision would be subject to the approval of the shareholders.
In late August, DLF promoters sold the entire 40 per cent stake in its rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore.
This deal included sale of 33.34 per cent stake in DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.
Promoters would infuse the net proceeds from this deal, estimated at about Rs 10,500 crore into DLF.
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