Realty major DLF's QIP issue has been oversubscribed by two times, enabling the company to raise around Rs 3,200 crore.
On Monday, DLF, the country's largest real estate firm in market value, had launched its qualified institutional placement (QIP) offering up to 17.3 crore shares to investors.
According to market sources, the DLF's QIP offer has been over-subscribed by two times at a price of around Rs 183-184 apiece.
Major institutional investors who have participated in QIP offer are Oppenheimer, UBS, HSBC, Marshall & Wace, Myriad, Key Square, Goldman Sachs, Indus, Eastbridge, Tata Mutual Fund and HDFC Mutual Fund, they added.
The QIP issue will close on Friday with allotment of shares to institutional investors.
With an aim to become a debt-free company, DLF had last year announced plans to issue shares through QIP to raise funds and pre-pay loans.
DLF launched its QIP on Monday at a floor price of Rs 193.01 per equity share but said it might offer a discount of up to 5 per cent on the floor price.
This is the third major fundraising from DLF. In 2007, DLF raised about Rs 9,200 crore through an initial public offering (IPO). In 2013, the company had raised nearly Rs 1,900 crore through an institutional placement programme.
The DLF's QIP comes close in the heels of successful launch of India's first Real Estate Investment Trust (REIT), launched by Blackstone and Embassy Group, to raise Rs 4,750 crore.
DLF's group Chief Financial Officer Ashok Tyagi recently said the QIP proceeds and further infusion of Rs 2,500 crore from promoters against the issue of warrants would help the company significantly reduce the debt that stood at around Rs 7,200 crore as on December 31, 2018.
DLF promoters K P Singh and family have already infused Rs 9,000 crore in the company and would pump in Rs 2,250 crore more.
The company made a preferential allotment of compulsorily convertible debentures (CCDs) and warrants to the promoteRead More – Source
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