India’s largest real estate firm DLF plans to raise Rs.2,100 Cr through institutional placement program (IPP)- a system in the market in which the stakes are sold to qualified institutional buyers.
DLF, India’s largest real estate firm, by April 2013, will raise over Rs.2100 Cr via selling its shares to qualified institutional buyers. The real estate major will sell around 8.1 Cr shares of the firm to raise the fund.
Though the move is in line with the guidelines specifying 25% public shareholding, the main aim of the move is to help the firm reduce the debt. However the Rs.2100 Cr fund is one of the biggest ever- raised through IPP, in India.
An official said that they have already started discussions with the bankers. He added that the firm is likely to appoint around three or four merchant bankers soon for the purpose. Though the pricing is not yet done, the official said that the shares will be priced either at the current market price or there may be a 5% discount in the existing prices. However the prices will be as per the prescribed guidelines of IPP, he added. Continue reading