DLF Assets, a holding company owned by the family of Kushal Pal Singh, the promoters of DLF Ltd, is planning to raise more than a billion dollars
NEW DELHI: DLF Assets, a holding company owned by the family of Kushal Pal Singh, the promoters of DLF Ltd, is planning to raise more than a billion dollars by privately placing equity and raising some debt, a source familiar with the development said.
Plans for a full-fledged equity listing have been put on the backburner due to the current non-conducive environment, the source said.
DLF Assets is the primary buyer of properties constructed by DLF. It purchases at market prices. Rajiv Singh, vice-chairman of DLF, said financing for DLF Assets would not be possible through a listing at least in the next twelve months.
“We are clear about it. In the interim, a private placement of equity, apart from other sources of funding, is being looked at. I can assure you of some news on this front this year,” Singh told analysts on Friday.
The mop-up could also include a convertible debt portion, sources said.
DLF’s chief financial officer Ramesh Sanka refused to comment on the quantum of money that would be raised.
DLF Assets has already received $400 million from D E Shaw and $200 million from a fund sponsored by Lehman Brothers. In May, it got $450 million from Symphony Capital, a London-based investment firm.
DLF, India’s largest real estate company, was expected to file papers for a $2 billion Real Estate Investment Trust offering with the Singapore authorities last June.
According to the April to June quarter results, Rs 1,557 crore out of the realtor’s revenues of Rs 3,846 crore came from DLF Assets.
As on date, DLF Assets owes Rs 3,382 crore to DLF.
“Cash flows should be substantial over the next 12-24 months,” Singh said.
“Demand,” he said, “will stay strong, and there has been no deferment in projects.”
Growth has indeed slowed down, but there is no de-growth, he said.
“We have a project cycle of 24 months across segments and we expect to sell everything in that period. We will find buyers at the inception of the projects and would find buyers on completion,” Singh said.
Recently, DLF had said it would buy back 2.2 crore shares at a price not exceeding Rs 600 per share, and a total consideration amount not exceeding Rs 1,100 crore to provide support to its falling stock prices due to the realty slowdown.
vivek_s@dnaindia.net
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