DLF promoters to infuse Rs 11,250 cr; board okays QIP

The board also gave its nod to selling shares through public issue or private placement to institutional investors.

The company is estimated to raise more than Rs 3,500 crore through this process.

In late August, the promoters had sold the entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore and proposed to invest proceeds into DLF.

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.

In a filing to the BSE, DLF on Friday said its board has approved the preferential offer and issue of upto 37.97 crore compulsorily convertible unsecured debentures (CCDs) to the promoters for cash.

The debentures would be converted into equivalent number of equity shares at Rs 217.25. That apart, the board approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into shares at the same price. Upon completion of the issue of debentures and warrants and conversion into equity shares, "the total additional amount of promoter/promoters group s equity contribution to the company will be approximately Rs 11,250 crore."

The board also approved the offer and issue upto 17.30 crore equity shares to eligible investors, in one or more tranches, in India or overseas, by way of public issue or a private placement or a qualified institutional placement.

It approved increase of authorised share capital of the company from Rs 500 crore to Rs 1,000 crore. The board also approved the appointment of Ashok Kumar Tyagi and Devinder Singh as Whole-Time Directors (WTDs) of the company for a period of five years with effect from December 1, 2017.