Debt reduction to under Rs 2,000 crore to improve cash flows for DLF

Strong rental revenues coupled with improving residential portfolio are positives

The DLF stock gained about 4 per cent in trade on Tuesday after the company announced that it would raise equity funds through the qualified institutional placement route. While the floor price of the same is pegged at Rs 193 a share, the company could offer a 5 per cent discount on the same. Given the 17.3 crore share on offer, the additional issuance could fetch the company upwards of Rs 3,100 crore depending on the pricing which is expected to be announced on Thursday. 

The company had a debt of Rs 7,200 crore at the end of