DLF to raise ₹800 crore via bonds, say sources

Real estate developer DLF Ltd is planning to raise around ₹800 crore through the issue of debentures, sources said.

The internal process for the fund raising exercise is underway and the company is also close to appointing the lead arranger for the bond issue, according to sources.

The board approval is expected be taken shortly.

DLF did not respond to an email seeking clarification on the proposed transaction.

The Gurugram-based builder has developed more than 158 real estate projects with an area of over 340 million square feet. With a considerable land bank under its possession, it has the potential to develop 215 msf of real estate across residential and commercial segments. It has an annuity portfolio of over 42 msf.

Stable outlook

In April, rating agency ICRA had assigned its NCDs ‘AA’ with a stable outlook.

The company is expecting a construction spend of ₹1,700 crore in the current fiscal, having already spent about ₹650 crore in the first half.

In the first half, it also generated operational cash flows of ₹2,000 crore and expects to end the year with over ₹3,000 crore.

At the end of September, it had about ₹3,000 crore of gross debt on its books.

On the residential side, it has an available inventory of ₹4,244 crore consisting of completed inventory and launched projects. It has a sales guidance of ₹13,000 crore for the entire year.

Its rental income under DLF Cyber City Developers at ₹1,069 crore in the September quarter grew 9 per cent year-on- year. It has about 5.3 msf under development and 2.6 msf in the pipeline. The net debt under the rental arm was ₹18,026 crore at the end of the quarter.