DLF falls over 1% ahead of 8.1 crore share sale on May 14

NEW DELHI: Realty major, DLF Ltd, slipped over 1 per cent in early trade on Monday ahead of its 8.1 crore share sale to institutional investors on May 14 to raise up to Rs 1,888 crore.

The company has fixed a price band of Rs 222-233 per share for its 8.1-crore share offer.

At 09:20 a.m.; DLF was trading 1.01 per cent lower at Rs 234.90. It hit a low of Rs 233.20 and a high of Rs 235.95 in trade today.

The issue of shares via institutional placement programme ( IPP) is being done to meet market regulator SEBI's guideline on minimum 25 per cent public shareholding by June 30 for private sector listed companies.

“Last month, DLF's shareholders approved the sale of fresh equity shares to meet market regulator Sebi's public shareholding norms,” ET reported. Promoters have 78.58 per cent stake in the company as on March 31.

According to the IPP document, DLF said that it intends to use the net proceeds of the issue for reducing debt and working capital requirement among other purposes. The net debt stood at Rs 21,350 crore at the end of the 2012 calendar year.