DLF promoters conclude Rs 9,000-cr deal with Singapore's sovereign wealth fund GIC

Realty major DLF's promoters have concluded the sale of 33.34 percent stake in rental arm to Singapore's sovereign wealth fund GIC for nearly Rs 9,000 crore

PTI December 27, 2017 12:02:34 IST
DLF promoters conclude Rs 9,000-cr deal with Singapore's sovereign wealth fund GIC

New Delhi: Realty major DLF's promoters have concluded the sale of 33.34 percent stake in rental arm to Singapore's sovereign wealth fund GIC for nearly Rs 9,000 crore.

With the closure of this deal, DLF promoters have received Rs 8,950 crore from GIC and another Rs 1,600 crore from the rental arm, DLF Cyber City Developers Ltd (DCCDL).

The promoters will infuse net proceeds into DLF, which in turn will use the amount to reduce its debt significantly from the current Rs 27,000 crore.

In late August, the promoters had sold the entire 40 percent stake in DCCDL for Rs 11,900 crore. This deal included sale of 33.34 percent stake in DCCDL to GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.

In a late-night regulatory filing, DLF on Tuesday said subsequent to fulfilment of all conditions precedent specified in the agreement, the sale and purchase of the securities and other closing actions were completed on 26 December.

"Accordingly, the company and the investor (GIC) now hold 66.66 percent and 33.34 percent of the paid-up equity capital in DCCDL, respectively," DLF said in the filing.

According to sources, the promoters have received Rs 8,950 crore from GIC and another Rs 1,600 crore from DCCDL as first tranche of the buyback of shares. The next tranche of Rs 1,400 crore will be due after a year.

DLF promoters conclude Rs 9000cr deal with Singapores sovereign wealth fund GIC

Representational image. Reuters.

On 1 December, the board of directors had approved allotment of debentures and warrants to promoters in lieu of their investment of proceeds from this deal into DLF.

A board meeting will be held on 29 December to consider and approve allotment of debentures and warrants to promoters group entities subject to and in accordance with terms to be approved by the shareholders at an extra-ordinary general meeting to be held tomorrow.

The board had approved the preferential offer and issue of up to 37.97 crore compulsorily convertible unsecured debentures (CCDs) to the promoters for cash.

The debentures would be converted into equivalent number of shares at Rs 217.25.

That apart, the board had 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 shares, "the total additional amount of promoter/promoters groups' equity contribution to the company will be approximately Rs 11,250 crore".

The board had also approved the offer and issue up to 17.30 crore 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.

India's largest realty firm DLF Ltd plans to raise around Rs 3,500 crore through sale of shares to institutional investors, the sources had said.

Infusion of capital by promoters will lead to increase in promoters' stake in DLF to more than 75 percent. So, the company plans to launch a QIP or public issue to maintain the minimum public shareholding limit of 25 percent.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Joe Biden solidifies victory in US presidential race with 306 votes after Georgia win: US reports
World

Joe Biden solidifies victory in US presidential race with 306 votes after Georgia win: US reports

Georgia, one of five states flipped by Biden after going into Donald Trump's column last time around, hadn't been won by a Democrat since Bill Clinton in 1992

US president-elect Joe Biden vows 'to get right to work' even as Trump reiterates claims of election fraud
World

US president-elect Joe Biden vows 'to get right to work' even as Trump reiterates claims of election fraud

Election officials from both political parties have stated publicly that the election went well, and international observers have confirmed there were no serious irregularities

Joe Biden chooses long-time advisor and 2014 Ebola response coordinator Ron Klain as chief of staff
World

Joe Biden chooses long-time advisor and 2014 Ebola response coordinator Ron Klain as chief of staff

Picking Klain, who had also played a central role in the economic recovery plan under Obama, underscores the importance the Biden administration will place on the COVID response