DLF receives shareholders nod to raise up to Rs 5,000 crore via debentures

India's largest realty firm DLF on Wednesday said shareholders have approved a proposal to raise up to Rs 5,000 crore through private placement of non-convertible debentures.

Last month, DLF had sought the shareholders consent through postal ballot to authorise the Board to offer NCDs (Non-Convertible Debentures) in one or more tranches up to Rs 5,000 crore through private placement on a preferential basis to augment long term resources for business needs.

In a filing to the BSE, DLF informed that the shareholders have approved this resolution.

The members have given nod to another special resolution to reduce borrowing power of the company's board of directors to Rs 30,000 crore from earlier Rs 50,000 crore.

That apart, DLF said shareholders have given their nod for making investment up to Rs 20,000 crore in its subsidiaries, joint ventures and associates.

"The company operates some of its businesses through subsidiaries, joint ventures, affiliates and associates. The funding obligation of such subsidiaries, JVs and associates are funded primarily out of the company's cash-flows," DLF had said in the postal ballot notice.

DLF has a total developable potential of 307 million sq ft, of which 57 million sq ft area is under construction.

DLF had posted 29 per cent fall in consolidated net profit at Rs 127.77 crore during the first quarter of this fiscal, compared with Rs 181.19 crore a year-ago.

For the last fiscal, DLF had posted net profit of Rs 646 crore on a turnover of Rs 9,790 crore.