Real estate firm DLF plans to raise around ₹ 3,100 crore by March 31 through issuance of shares to the qualified institutional investors in a bid to make the company debt-free, said a source familiar with the matter.
The realty company is planning to issue 17.63 crore shares through the qualified institutional placement (QIP) and the proposed price is expected to be around ₹180 per share.
Along with the QIP, an additional ₹2,500 crore is to be infused by the promoter against the issue of warrants, the source said.
In December 2018, the debt of the company stood at ₹7,224 crore and the mobilised funds will bring down the debt of the company to around ₹1,600 crore.
Shares of DLF closed at ₹189.40 on the BSE on Monday.
Meanwhile, as part of its new business model, the realty developer is coming up with ready-to-move-in flats given the sluggish market conditions.
The company is set to start construction of a two million square feet (msf) residential project in the first phase — out of the eight msf. The entire project will be on a complete-and-sell business model.
Earlier, Rajeev Talwar, CEO, DLF, had told BusinessLine , “It is a better model as the customer no longer needs to worry about legal issues, ownership of land and modifications of building plans.”
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