DLF may come up with 7:1 bonus issue

In the run-up to its public issue, perhaps the biggest in Indian corporate history, real estate company DLF may announce a liberal bonus of seven shares for each share held by stakeholders and the decision can be taken at the extraordinary general meeting next week.

The company will also split the shares with a face value of Rs 10 each into five shares of Rs 2 each and subsequently issue 132,18,79,895 fully paid new equity shares as bonus.

The notice has been sent to all the shareholders, enlisting 10 resolutions. When contacted, DLF Universal Chief Financial Officer Ramesh Sanka confirmed to PTI that an EGM had been convened on April 20 but refused to give further details.

The company had capitalised a sum of over Rs 264.37 crore from the standing to the credit of share premium account, general reserve account and the credit of surplus, according to the profit and loss account, on March 31, 2005, for issuance of new shares as bonus.

The notice included the resolution that the bonus shares to be issued would also be listed on the stock exchanges and to make an application to the National Securities Depository Ltd and the Central Depository Services for crediting the bonus shares to the individual depository accounts of the allottees.

The board has been authorised to create and issue up to Rs 23.50 crore equity shares of Rs 2 each at a price not less than Rs 64 per share.