Realty major DLF and its promoters are planning to sell 40 percent in rental business this fiscal year. The money is likely to come in the first quarter of FY17, so it won't impact the company's profit and loss account now.
Sources indicate that the target is April-end. The company is hoping to raise Rs 14000-15000 crore from this exercise to pare down debt by almost 50 percent. DLF's debt currently stands at more than Rs 22,000 crore.
JPMorgan and Morgan Stanley have been engaged by DLF and its promoters. It is a two tranche deal. The promoters of the company will first resolve the compulsory convertible preference shares and sell that to private equities and sovereign funds and then infuse that money into DLF.
Sources also say due diligence process is on right on. However, talks are on with as many as five private equities and sovereign funds including Blackstone, GIC, Canada Pension Fund, among others. The deal will be signed in this financial year but the money will flow in the first quarter.
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