DLF’s drop in profit elicit approval from the shareholders on various issues
India’s largest realty firm DLF has sought shareholders’ approval to raise up to Rs 5,000 crore through private placement of non-convertible debentures. DLF informed during a filing to the BSE (Bombay Stock Exchange) that the shareholders’ nod has been sought through a postal ballot.
This approval is sought for reducing the borrowing power of the company’s board of directors to Rs 30,000 crore from earlier Rs 50,000 crore. This will be used to secure the borrowings by pledging the company’s movable and immovable properties.
To strengthen the long-term resources for business needs, the shareholders consent has been sought. DLF also mentioned that this approval is sought to authorise the Board to offer NCDs (Non-Convertible Debentures) in one or more tranches up to Rs 5,000 crore through private placement.
The builder also plans to seek approval from the shareholders for up to Rs 20,000 crore for future requirements of business and to ensure the company’s funding obligations towards its joint ventures, subsidiaries and associates.
There is a bad news for the shareholders as DLF had reported a 29.5 % drop in consolidated net profit in the quarter to June from a year ago. Hence measures have to be taken to improve the situation and provide returns of investment to the shareholders. The revenue declined 25.4 % to Rs 1,725.17 crore.
Source- The Financial Express
