Realty major DLF’s offer for sale of 8.1 crore equity shares to institutional investors has been oversubscribed by 1.3 times,which will help it raise Rs 1,888 crore at the upper band.
DLF today launched its IPP offering 8,10,18,417 equity shares at a price band of Rs 222-233 apiece. The company will finalise the final pricing for allotment of shares later.
As per data available on the NSE till 5 PM,DLF’s issue has been oversubscribed by 1.3 times with the company receiving 10,63,49,558 bids from qualified institutional buyers.
The issue of shares via IPP is being done to meet market regulator SEBI’s guideline on minimum 25 per cent public shareholding by June 30 for private sector listed companies.
As on March 31,the promoters of the company have 78.58 per cent stake.
According to the sources,US-based foreign fund Oppenheimer,which already has over 5 per cent stake in DLF,has also placed bids to further buy shares through the IPP.
The bankers to the IPP issue 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,UBS Securities India.
This is the third major fund raising exercise in the company. DLF had launched its Initial Public Offer (IPO) to raise over Rs 9,000 crore in 2007,while the promoters had sold 9.9 per cent stake in 2009 to raise Rs 3,860 crore.
In the IPP document,DLF had said that it will use the net proceeds of the issue for reducing debt and working capital requirement among other purposes. The net debt stood at Rs 21,350 crore at the end of the 2012 calendar year.
Shares of the company today closed trading 0.73 per cent down at Rs 230.30 apiece on BSE.