DLF may launch QIP by April; raise ~50 bn

DLF, the country’s largest developer by market value, is looking to launch its qualified institutional placement (QIP) of shares by April this year, a source said.

DLF has already received approval from shareholders to sell 173-million equity shares, which will be determined by the formula laid down by market regulator Securities and Exchange Board of India.

According to a source, the company may raise ~45 -50 billion from the QIP. When contacted, Saurabh Chawla, DLF group chief financial officer, said, “The board has not taken any decision yet. We have to do the QIP in the next 12 months and we will do it.” He, however, did not comment on the quantum of the QIP.

The company has already said that its development arm, which has a debt of ~130 billion, will be a zero-net debt company by March 31, 2019.

According to a recent CRISIL report, the firm has already repaid a debt of ~66 billion from the ~90 billion that the promoters had infused in December 2017.

According to the source, the company has already clocked sales to the tune of ~ 5 billion in two months of resuming sales in November last year. DLF had a gross debt of ~290 billion as of September 30, 2017. Fund infusion by the promoters resulted in debt reduction by around ~66 billion so far in FY18. “With additional proceeds from the offering of equity shares and the balance payment of 75 per cent against warrants issued to promoters, the debt is expected to reduce further by FY19,” CRISIL said. “DLF is focusing on selling its ready-to-movein apartments to fund its future plans and reducing debt,” said DLF Chief Executive Officer Rajeev Talwar.

DLF has completed inventory worth ~150 billion in Delhi, Gurugram, Lucknow, Kochi and Punjab.