New Delhi: Realty major DLF is seeking shareholders' approval to create charge, lien or pledge on its over 50 percent shares in three subsidiaries, which holds rental commercial assets, for raising up to Rs 7,500 crore.
In a notice to the AGM, DLF has sought shareholders' nod through special resolution "to create charge, lien, pledge and other encumbrances of any nature/kind, exceeding 50 percent of the company's shareholding in the material subsidiaries -- DLF Cyber City Developers Ltd, Caraf Builders & Constructions Pvt Ltd and DLF Assets Pvt Ltd."
DLF holds 100 percent equity shareholding in these three subsidiaries, which are in the business of developing and leasing of office space, IT Park/SEZ and retail properties.
Its rental business, with leasable area of about 29.4 million sq ft, yielded annuity income of about Rs 2,200 crore during last fiscal.
The creation of charge, lien and pledge could be in one or more tranches "to secure the amount raised by the company and/or such material subsidiaries... From the lenders provided that the amount borrowed and outstanding at any point of time shall not exceed Rs 7,500 crore", the notice added.
DLF, the country's largest realty firm, has also sought shareholders approval to lease and/or create charge, lien, mortgage, hypothecation, etc exceeding 20 percent of the assets of these three subsidiaries.
"To augment long-term resources and to raise the necessary finance inter-alia through loans, lease rental discounting, commercial mortgage backed securities (CMBS), bonds and any other instruments of similar nature for the business operations, the company may be required to create charge, lien, pledge and encumbrances of any nature/kind, in one or more tranches, exceeding 50 percent of the company's shareholding in the material subsidiaries," the notice said.
DLF's net debt stood at Rs 20,965 crore at the end of the last fiscal, of which about Rs 14,000 crore pertained to rental business (RentCo) and the rest to development arm (DevCo).
Its net profit declined by 16 percent to Rs 540.24 crore in 2014-15 from Rs 646.21 crore in the previous year. Total revenue fell by 17 percent at Rs 8,168 crore in 2014-15 fiscal from Rs 9,790 crore in the previous year.
