DLF hits a new high

DLF hit a new 52-week high today at Rs.146.50 and it currently remains at Rs.145 levels, up some 8.5%.

The founder of the company, KP Singh announced that he and his family will infuse Rs.10,000 crore into the company to wipe out its debt completely. This is proposed to be done in a two-step transaction – first, they will bring in Rs.10,000 crore by purchasing shares in a preferential issue with funds raised from the sale of their stake in the company's rental unit.  This is the same 40% stake sale it had announced earlier in DLF Cyber City Developers for Rs.12,000 to Rs.13,000 crore.

In the second step, it plans to raise Rs.3000 crore from institutional investors – this is mainly to ensure that promoters stake, after purchase of preferential stake does not cross the 75% threshold.

The consolidated debt of DLF currently stands at over Rs.22,000 crore. These are not new measures – the promoters had announced this earlier too but till date does not seem to have found takers for its rental unit. But the market is enthused today with this recycled news as hope springs anew that this time around, maybe they will indeed succeed in bringing down the debt as promised.