Oversubscription of DLF’s QIP issue; the company to raise Rs 3,200 crore

The oversubscription of leading realty player DLF’s QIP issue by two times, has enabled the company in raising around Rs 3,200 crore.

Recently, the company launched its qualified institutional placement (QIP) offering up to 17.3 crore shares to investors.

As per the market sources, the DLF’s QIP offer was over-subscribed twice at a price of around Rs 183-184 apiece.

A number of institutional investors participated in the QIP offer. Oppenheimer, UBS, HSBC, Marshall & Wace, Myriad, Key Square, Goldman Sachs, Indus, Eastbridge, Tata Mutual Fund, and HDFC Mutual Fund, to name a few.

Reportedly, the QIP issue will close in the next few days with an allotment of shares to institutional investors.

Looking forward to emerge as a debt-free company, DLF had last year announced plans to issue shares through QIP for raising funds and pre-pay loans.

The company launched its QIP recently at a floor price of Rs 193.01 per equity share, stating that it might offer a discount of up to 5 percent on the floor price.

This happens to be the third major fundraising from DLF.an amount of over Rs 9,200 crore was raised by DLF in 2007, through an initial public offering (IPO). In 2013, the company had raised nearly Rs 1,900 crore through an institutional placement programme.

In the words of Ashok Tyagi, the Chief Financial Officer of DLF Group, “The QIP proceeds and further infusion of Rs 2,500 crore from promoters against the issue of warrants would help the company significantly reduce the debt that stood at around Rs 7,200 crore as on December 31, 2018.”

An amount of Rs 9,000 crore has already been invested by the DLF promoters K P Singh and family in the company. They are likely to invest around Rs 2,250 crore additionally.

A preferential allotment of compulsorily convertible debentures (CCDs) and warrants has been made by the company to the promoters against the infusion of funds.

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