The board of directors of India’s largest real estate firm DLF has allotted to promoters nearly 380 million compulsorily convertible unsecured debentures of Rs217.25 each on a preferential basis and the amount will be utilized to reduce debt significantly.
DLF’s newly appointed group Chief Financial Officer Saurabh Chawla said the promoters have invested Rs90 billion recently and another Rs22.50 billion would be infused in the next one year.
DLF promoters have earlier concluded the sale of a 40% stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs119 billion. This deal included the sale of a 33.34% stake in DCCDL to GIC for Rs89 billion and buyback of remaining shares worth Rs30 billion by DCCDL.
DLF’s debt stood at nearly Rs270 billion at the end of the second quarter of the current fiscal. In a filing to BSE on Friday, DLF said the board has allotted its promoters nearly 380 million compulsorily convertible unsecured debentures (CCDs) of Rs217.25 each on a preferential basis.
DLF’s board approved the issue of nearly 138.1 million warrants of Rs217.25 each as well. “The company has received Rs82.50 billion towards allotment of fully-paid CCDs and Rs7.501 billion towards 25% of the warrants issue price, aggregating amount Rs90 billion towards the allotment of CCDs and warrants,” the filing said.