You are here:HomeCorporates

DLF to issue fresh equity shares to reduce promoters' stake

close

New Delhi:

Realty major DLF today said it will issue fresh equity shares in the next fiscal to dilute promoters' stake to 75 per cent as per market regulator SEBI's guidelines and will use the funds to cut debt.

"In the medium term, (this will) further pare down the net debt to below Rs 15,000 crore with operational cash flow surpluses and equity issuance to bring the free float to 25 per cent (in compliance to current regulations) during FY14," DLF said in an analyst presentation.

DLF Executive Director (Finance) Saurav Chawla said there would be a capital market transaction next year leading to dilution of promoters' stake in the company.

"It will be a fresh issue of share," he added. As on September 30, promoters and their group companies
held 78.58 per cent stake in the company. As per the SEBI guidelines, private companies should have a minimum public shareholding of 25 per cent by June 2013.

Chawla said the company plans to cut debt to around Rs 15,000 crore from the existing Rs 21,200 crore from sale of two big-ticket non-core assets (hospitality chain Amanresorts and wind energy business), surplus cash flow and capital market transaction.

In 2007, DLF had come out with its IPO and raised over Rs 9,000 crore. The company had offered shares at Rs 525 each that is now trading at around Rs 200 apiece.

The company's promoters had sold 9.9 per cent stake in 2009 to raise Rs 3,860 crore.

Story first published on: November 14, 2012 19:35 (IST)


For Profit Update,
Follow NDTV on Pinterest

Social Sharing

Advertisement

Advertisement

Portfolio
 

Advertisement

Market Data provided by © Accord Fintech.
© Copyright NDTV Convergence Limited 2014. All rights reserved.