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Construction : Web Exclusive | February 2013 | Source : Construction Update

DLF to raise Rs 2,100 cr by selling shares

By next April DLF, India's largest real estate developer, plans to raise Rs 2,100 crore by selling 8.1 crore shares to qualified institutional buyers — known in market parlance as institutional placement programme (IPP). The move is in line with guidelines stipulating 25 per cent public shareholding.

The fund raising will also help reduce the realtor's debt, a company official said. The issue will be the largest fund raising in India through IPP. The company is going to take board approval in a few weeks, the official said. The pricing will be decided in April. In any case, it will be either at the prevailing market price or at a discount of 5 per cent, as permitted under the IPP guidelines, the official said.

The company, promoted by Kushal Pal Singh and family, can raise Rs 2,175 crore at Friday's closing price at Rs 267.95 per share on BSE. The company commands a market value of Rs 45,514 crore. The promoters, who own 78.58 per cent of the company, will trim their stake to 75 per cent after the issue.

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