DLF seeks approval to raise Rs 5,000 crore via NCDs

New Delhi: Country's largest real estate firm DLF has proposed to raise up to Rs 5,000 crore via non-convertible debentures, including other debt securities, on private placement basis. "To offer or invite subscriptions for secured/unsecured redeemable non-convertible debentures including subordinated debentures, bonds and/or other debt securities, in one or more series/tranches up to an aggregate amount of Rs  5,000 crore," DLF today said in a regulatory filing.       

It added that the board is authorised to determine the terms of issue of such debentures including the class of investors, securities to be offered. Giving the reason for this proposal, DLF said, ". In order to augment long-term resources for business needs and to reduce reliance on the banking system, the company intends to  issue non-convertible debentures, including subordinated debentures, bonds and/or other debt securities." The company has sought consent of its "members" for the proposed resolutions by way of postal ballot, the filing said. DLF's net debt stood at Rs 20,965 crore as on March 31, 2015, up by Rs 628 crore from Rs 20,336 crore at the end of   the October-December quarter.       

Of the total debt, DLF said about Rs 14,000 crore pertains to rental business, and the rest towards development arm.  The company is in talks with few private equity players to  raise funds in its some new housing projects. On the Real Estate Investment Trust (REITs), DLF had said  it intends to form 2 REIT platforms to strategically monetise  almost 30 million sq ft of office and retail assets.  

DLF had reported 22 per cent fall in consolidated net  profit at Rs 171.62 crore in the fourth quarter of 2014-15 fiscal, as against Rs 219.68 crore in the year-ago period. Shares of DLF closed up by 7.6 per cent at Rs 114.65 on BSE today.