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

DLF may raise Rs 19 bn via IPP

The country's leading real estate firm DLF plans to raise around Rs 1,940 crore through dilution of stake in the company via institutional placement programme (IPP) route.

Industry watchers feel that this could be the largest IPP issue in India and the third-biggest fund raising exercise ever in the real estate space in the country.

In order to manage the issue, the company is learnt to have roped in around nine merchant banks. Through this IPP, the company plans to sell 81 million fresh shares.

Among the merchant banks hired by the firm are JP Morgan, Deutsche Bank, Bank of America Merrill Lynch, Standard Chartered, CLSA, HSBC, Kotak Mahindra. India Infoline is the co-book running lead manager to the large issue.

While this would enable the firm to raise fresh capital, it would also facilitate the promoter meet the minimum public holding norms.

Although the price of the share sale has not been fixed yet, industry sources feel that the firm may raise around Rs 1,940 crore.

It may be recalled that DLF raised over Rs 9,000 crore (over $2 billion then) six years ago through IPO. It soon followed it up with $600 million funding from Lehman Brothers and DE Shaw for DLF Assets. These two funding transactions were executed close to the peak of the stock market boom.

 
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