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

DLF to invest Rs 3,000 cr on new projects in FY14

On construction of various projects, realty major DLF will invest about Rs 3,000 crore this fiscal and is targeting sales booking of more than Rs 6,000 crore. DLF Group Chief Financial Officer Ashok Tyagi said that the company will invest about Rs 3,000 crore on construction of various projects this year. Last year, the company did sales booking of 7.23 msf worth Rs 3,900 crore, he said.

He said that higher sales realisation will come from existing projects like Crest in Gurgoan phase-5 and new projects in Lucknow (Uttar Pradesh), Panchkula (Haryana) in north India and Chennai in south India among others. DLF, the country's largest listed developer, said it aims to bring down net debt to Rs 19,000 crore by June, and reduce it further to Rs 17,000 crore by end of this fiscal.

DLF has raised Rs 1,863 crore through the issue of over 8.1 crore fresh shares to institutional investors, enabling it to dilute promoters stake to 75 percent in line with market regulator Sebi's minimum public shareholding norms. The company said it will focus on bringing down the debt level by 50 percent in the next three years and see free-cash flow remains positive by 2014-15 fiscal.

Its net debt as on March 31, 2013 was Rs 21,731 crore and average cost of debt has reached 12.8 percent, it said. On the progress made in sale of its hospitality venture Amanresorts to reduce its debt level, Tyagi said: "We hope that the deal will be concluded by June.

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