DLF, India’s largest real estate developing firm, plans to raise Rs.2,100 Cr through institutional placement program (IPP). DLF plans to sell nearly 8.1 Cr shares to raise the amount.
DLF is all set to raise a huge fund through institutional placement program – market system in which the stakes of the seller-firm are sold to some qualified institutional buyers. Under this scheme the real estate major will sell around 8.1 Cr shares of the firm.
DLF aims to cut short its debt mainly. However the deal is expected to be in line with the guidelines of SEBI which suggested that minimum 25% of shares should be opened for the public.
An official of the firm said that the firm has already started discussions with some banks and other financiers. However if they raise Rs.2100 Cr, it would be the biggest ever fund raised through IPP. According to the available sources DLF is likely to appoint a team for the purpose.
In fact the actual pricing has not yet done. The official revealed that the firm may price the shares either at the market price or with a 5% discount on the existing market prices. He added that the pricing will be complying with the entire guidelines of IPP.
With the existing prices over Rs.260 per share (price calculated on Friday’s closing price on BSE rate) the real estate major will be able to raise over Rs.2100 Cr. At present the promoters of the firm holds 78.58% shares and only the remaining portions are opened to the public. However, with the institutional placement program their shares will be limited to three fourth correctly.
DLF spokesperson told the media that the firm will comply with the Directives of the Securities Exchange Board of India (SEBI) in all its dealings. In August 2010, SEBI had asked some listed companies to let 25% of minimum public shareholding by June of 2013. The market regulator’s list contained 193 companies.
