DLF to Raise Funds through Public Issue

May 30, 2007	(Be the first to rate this story!)  Loading ...
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DLF Ltd, a renowned name in Indian real estate, has announced to invest Rs 3,500 crore for development of its land reserves.  The amount is however lower than what the company has earlier decided to invest for the purpose.

The company has plans to raise Rs 9,625 crore through a public issue of Rs 1.75 crore shares in the price band of Rs 500-550 between June 11 and June 14.  The new shares will comprise 10.27 per cent of DLF’s post-sale capital. The sale of shares on offer will push the company’s market value to a mark of $24 billion, more than double Unitech’s, India’s biggest real estate developer.

Of total land bank available with DLF, around 5,269 acres is located in the National Capital Region whereas 2,708 acres in other major cities and 2,278 acres in the rest of the country.

The current land reserves of the company are enough for its planned real estate projects over the next 10 years. The real estate major envisages constructing land reserves at cost effective prices at prospective locations in the country, to gain from them during the upside in the economy, says DLF Vice Chairman Rajiv Singh.

There are 11.3 per cent of the land reserves with DLF and its subsidiaries. The company enjoys sole development rights for 44.6 per cent of the total.

Also, the company has letters of acceptance for 35.9 per cent of the land, whereas the rest are joint developments with partners.

DLF offers an insight into its future plans which includes airport management, financial services, asset management, leisure entertainment and development of hospital properties.

DLF is promoted by billionaire Kushal Pal Singh, whose wealth doubled last year to $10 billion, according to Forbes. Singh, 75, a former Indian Army officer, bought land in Gurgaon, 17 miles (27 km) south of central New Delhi, in the early 1980s.

Kushal Pal Singh, the billionaire owner of DLF, owns 99.5% of parent DLF Universal with his family, is worth $10 billion according to Forbes. Singh, 75, comes from a family of landlord and lawyers. He bought land in Gurgaon, 17 miles (27 km) south of central New Delhi in the early 1980s.

Development of Gurgaon as an important suburb of the NCR owes to DLF, a company which carved out residential plots and condominiums and commercial spaces that house offices and retail outlets.

News Published Under:   Real Estate India, Real Estate Developers |

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