Promoters infuse ₹9,000 crore in DLF to pare debt
NEW DELHI: Realty major DLF on Friday said its promoters have infused ₹9,000 crore in the company and the amount will be utilised to reduce debt significantly.
DLF, the country’s largest real estate firm, has issued compulsorily convertible debentures and warrants to promoters entities in lieu of this investment.
Earlier this week, DLF promoters concluded the sale of 40% stake in rental arm DLF Cyber City Developers Ltd are major headwinds for crude in (DCCDL) for ₹11,900 crore. 2018. This deal included sale of
In the currency markets, 2017 33.34% stake in DCCDL to GIC was the best year for the rupee in for ₹8,900 crore and buyback of at least 10 years while the dollar remaining shares worth ₹3,000 index—a basket of currencies of crore by DCCDL. DLF’S debt the major trading partners of the stood at nearly ₹27,000 crore at Us—saw its sharpest decline in a the end of the second quarter of decade. the current fiscal.
This year, the rupee rose over In a filing to the BSE, DLF 6% and the dollar index slipped today informed that the board more than 9% in the same period. has allotted to promoters nearly
The weakness in the US dollar 38 crore compulsorily convertiin the first three quarters of 2017, ble unsecured debentures as well as the resurgence in FII (CCDS) of ₹217.25 each on a prefinflows into Indian debt, and to a erential basis. The board smaller extent into equity, conapproved issue of nearly 13.81 tributed to the appreciation in the crore warrants of ₹217.25 each rupee, said Aditi Nayar, principal as well. economist, ICRA Ltd. “The company has received
ICRA expects the rupee to ₹8,250 crore towards allotment trade in a range of 63-67 per dollar of fully-paid CCDS and ₹750.10 in 2018. “There is limited headcrore towards 25% of the warroom to increase FII investment rants issue price, aggregating in Indian debt. The pace of recovamount ₹9,000.10 crore towards ery of corporate earnings and the allotment of CCDS and warmacroeconomic outlook would rants,” the filing said. drive the magnitude of FII The conversion of CCDS and inflows into Indian equity in 2018. exercise of warrants would be Additionally, the trends related undertaken in a manner that is to FDI inflows, and European in compliance with the miniCentral Bank (ECB) and non-resmum public shareholding ident Indian (NRI) deposits relanorms. tive to the size of the current When contacted, DLF’S newly account deficit would affect sentiappointed group CFO Saurabh ment toward the rupee. CommodChawla said the promoters have ity prices and the outlook for invested ₹9,000 crore on Friday inflation and the fiscal deficit and another ₹2,250 crore would would also influence sentiment,” be infused within the next one Nayar added. year.
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