As a part of its ongoing efforts to pare debt, DLF Ltd is understood to have sold a 32-acre land parcel in Hyderabad for about Rs 650 crore to Suvarnabhoomi Developers.
Sources close to the development confirmed that the deal has been clinched. This is the second land deal the company has undertaken. Last August, it sold 17 acres in Mumbai to Lodha Developers for Rs 2,727 crore.
This apart, the company said it is looking to raise Rs 1,888 crore through a sale of shares to institutional investors on May 14.The company will sell 8.1 crore equity shares at Rs 222 each.
In a filing to the BSE late Saturday, DLF said “the Equity Issuance Committee of the Board of Directors...has finalised May 14, 2013 as the issue opening and closing date. Further, the floor price has been finalised at Rs 222 per equity share with a price band of Rs 222 to Rs 233 per equity share,” the filing added.
Minimum shareholding
The share sale is for meeting market regulator SEBI’s guidelines on a minimum 25 per cent public shareholding by June.
The promoters, including DLF founder K.P. Singh, hold 78.58 per cent stake in the company as of now.
Earlier this week, the company had appointed eight bankers to the issue.
They are: Standard Chartered Securities (India), Deutsche Equities India, DSP Merrill Lynch, J.P. Morgan India, CLSA India, HSBC Securities and Capital Markets (India), Kotak Mahindra Capital Company and UBS Securities India.
In the IPP document, DLF said it intends to use the net proceeds of the issue to reduce debt and working capital requirements, among other purposes. Net debt stood at Rs 21,350 crore at the end of the 2012 calendar year.