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DLF expects Rs 13,000 crore infusion post GIC deal

by August 27, 2017 General
developer said on Sunday it had entered into a joint venture with Singapore’s sovereign wealth fund to build rental assets in India after its promoters sold 33.34 per cent stake in the rental arm to the Singapore sovereign wealth fund.

also said it expected an infusion of Rs 13,000 crore into the company, a better part from promoters, by December and the amount would be utilised for reducing its debt substantially. While promoters are expected to invest about Rs 10,500 crore into the company, expects to raise another Rs 3,000 crore from institutional investors through qualified institutional placement, sources said. 

will have to hit capital market as promoters’ shareholding will cross the minimum threshold of 75 per cent post infusion of fund by them. With infusion of Rs 13,000 crore into and expected receipt of Rs 1,500 crore from some other assets, the firm’s debt, excluding that of its rental arm Cyber City Developers Ltd (DCCDL), will come down sharply to Rs 6,000 crore from Rs 20,500 crore. 

had a net debt of nearly Rs 26,000 crore at the end of the June quarter and out of that Rs 5,500 crore pertained to DCCDL. promoters — K P Singh and family — last week decided to sell 40 per cent stake in DCCDL for Rs 11,900 crore. This deal, the biggest in the country’s realty space, included sale of 33.34 per cent stake to for Rs 8,900 crore and a buyback of remaining shares worth Rs 3,000 crore by DCCDL. 

Post this deal, will have 66.66 per cent stake in the DCCDL and 33.34 per cent stake in the JV. “Gross proceeds to the promoters from the transaction would be Rs 11,900 crore. The net proceeds to the promoters are estimated to be in excess of Rs 10,000 crore post applicable taxes,” said in an analyst presentation.