DLF raises Rs 375 crore through NCDs

Realty major DLF on Monday raised Rs 375 crore through non-convertible debentures (NCDs) as a part of its strategy to boost internal cash flows. Earlier this month, the firm had raised Rs 1,000 crore through non-convertible debentures, the company's first capital market issuance since SAT relief. In a filing to the BSE, DLF said it has "allotted 12.25% privately placed fully-paid non-convertible debentures of a principal amount of Rs 375 crores...redeemable for cash at par in separate series within a period of 4 years 11 months and 18 days from the date of allotment".

These debentures would be secured by certain immovable assets of DLF's wholly owned subsidiary and listed on BSE. In March, Securities Appellate Tribunal (SAT) quashed a three-year ban imposed on the company by the Securities and Exchange Board of India (Sebi). Since last three-four years, DLF has been raising funds through sale of non-core businesses and land parcels to cut debt and boost cash flows for meeting construction costs.

It has raised over Rs 10,000 crore through these measures. The company has already exited from hospitality, cinema and insurance businesses. It also sold a big-ticket land parcel in Mumbai.

In view of sluggish housing sales in last few years, DLF is also in the process of raising over Rs 3,000 crore through private equity at project levels to boost cash flows. Sources had earlier said that the company is in advance stage of talks with Singapore government's investment arm GIC to sell stake in a new housing project located in the national capital. The company is also planning to launch two Real Estate Investment Trusts (REITs) this fiscal to monetise its rent- generating commercial assets.