Largest developers of India, DLF is planning to sell its shares. The realty major aims to raise Rs.2000 Cr through selling shares.
DLF plans to sell out nearly 81 million shares. Through this, the realty major aims to raise over Rs.2000 Cr. The shares will be sold via institutional placement program (IPP).
Though the developer has announced its plan, the timing is not yet announced. However DLF is reported to sell its shares in the first half of May. By selling 81 million shares, the firm aims to comply with the guidelines prescribed by SEBI.
Last year, the Securities and Exchange Board of India had ordered all the listed firms to limit their shares by 75 percent while making 25 percent available for the public.
Currently the promoters of DLF hold 78 percent of its stakes. This will come down to 75 percent after selling the shares.
The developer group officials said that the shares will be sold under IPP. Under the IPP, the shares can be sold either at the market price or with a maximum discount of five percent. Rs.2 is taken as the face value of each share.
For conducting the sale of shares, the realty firm has already appointed eight banks. UBS, Standard Chartered, Kotak, JP Morgan, HSBC, Deutsche Bank, CLSA and Bank of America-Merrill Lynch are the eight banks mandated to conduct the sales.
Though by selling the shares, DLF may comply with the guidelines of the market regulator; this is not the primary objective. The main objective is to cut the debts down. The debt of DLF, till December 2012, is Rs.21, 350 Cr.
So the realty major may achieve many things by selling the shares. Among all these, the most prominent and most important will be cutting short the debt of the real estate firm.
