DLF Ltd (DLF.BO: Quote, Profile, Research, Stock Buzz), Indias largest-listed property developer, has sought shareholders approval to raise up to 100 billion rupees ($2.3 billion) by selling shares to institutional investors.
The New Delhi-based company said in its annual report for a shareholders meeting on Sept. 30 it expected to complete the share sale within 12 months of getting shareholder approval.
This is just an enabling resolution so that we can raise the money when we need, a DLF spokesman told Reuters.
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DLF Ltd, the countrys largest listed property developer, has sought shareholders approval for raising up to Rs10,000 ($2.3 billion) by selling shares to institutional investors.
DLF has called a shareholders meeting on 30 September for the purpose and expects to complete the share sale within 12 months of the approval, the New Delhi-based company said in its annual report.
DLF had raised around Rs10,000 crore ($2.25 billion) in its initial public offer last year, and in July, the company said it would buy back shares worth Rs1,100 crore to boost sagging share prices.
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Its been a bad year for property tycoon Kushal Pal Singh with shares in his firm DLF, Indias largest developer, diving 80 percent since January amid global economic turmoil.
Singh, who owns 88 percent of DLF, has lost 39 billion dollars in the share rout, leaving him with 7.8 billion dollars, according to the Forbes rich list.
His woes reflect a wider malaise gripping Indias once-booming real estate market that drew a host of international investors including private equity giant Blackstone, investment bank Goldman Sachs and General Electric.
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A stagnant property market, tightening of lending by banks and failure to raise money through public equities are forcing real estate developers to look for alternative options to raise money.
Indias benchmark Realty Index lost more than half its value this year. With the heat being turned on, realtors of all sizes are pursuing different finance routes. Big players are looking at private equity funds to complete pending projects, while small developers are turning to the larger construction companies to sell theirs.
This is really a tough time for the realty industry, Naveen Raheja, chairman of the Delhi-based Raheja Developers told
Dena Bank has decided to delist equity shares from the Ahmedabad Stock Exchange and Delhi Stock Exchange.
The public sector bank also appointed three directors representing shareholders other than Central government, Dena Bank informed bourses today.
The Extra Ordinary General Meeting (EGM) of the shareholders today approved delisting of share from The Stock Exchange, Ahmedabad and The Delhi Stock Exchange Association.
Three new directors were elected in the EGM from the shareholders other than government. They are Chintaman Mahadeo Dixit, Anup Mehta and Anil K Gupta.
Indias five-year property boom is coming to an end as the supply of housing increases, borrowing costs rise and a stock market rout erodes buying power, according to executives at two mortgage lenders. Prices across India may drop as much as 15% in the coming months, said Keki Mistry, vice chairman of Housing Development Finance Corp, Indias largest provider of home loans.
Gagan Banga, chief executive of Indiabulls Financial Services Ltd, said thatprices may fall as much as 20%. Indias central bank signaled it will raise borrowing costs further after increasing rates this week to the highest in more than
