DLF to raise up to Rs 5,900 cr from overseas

NEW DELHI: DLF Ltd, the country's largest real estate firm, on Thursday announced its plan to raise upto $1.5 billion (about Rs 5,900 crore) loan from the overseas market for executing its business plan and to pick up stake in DLF Asset's proposed IPO in Singapore.

DLF Assets, promoted by KP Singh and is independent of DLF, will float an IPO in Singapore to raise 1.5 billion dollar and would be listed there.

DLF, the flagship company, would invest 750 million dollar to participate in the IPO of DLF Assets and would invest similar amount in projects or firms in furtherance of its business in India and abroad.

"To further the business plan of DLF, including investment in the forthcoming IPO of DLF Offices Trust, the board has given us an approval to raise loan upto $1.5 billion through overseas subsidiary," DLF Ltd Executive Vice President (Finance) Saurabh Chawala said.

DLF would not dilute any stake for raising the loan from abroad, he said, adding that the transaction is expected to get completed in 30 days.

The board, in its meeting held today, approved investment upto 750 million dollars in the IPO of DLF Offices Trust, which would be the listed entity of DLF Assets in Singapore.

"DLF Assets Ltd (DAL) would be offering its stake through DLF Offices Trust to REIT investors. DLF would buy a minority stake in the trust through this investment," he said.

Chawla said the filing for the proposed IPO would be done in few weeks and the issue would hit the Singapore market in January next year.

According to banking sources, Goldman Sachs and Lehman Brothers have been appointed as the advisor for the issue to raise around $1.5 billion.