New Delhi, Dec 27 (PTI) Realty major DLF’s shareholders today approved an issue of debentures and warrants to promoters in lieu of Rs 11,250 crore equity infusion into the company to reduce company’s net debt significantly.

The shareholders, at an extra ordinary general meeting held today, approved company’s plan to sell shares through public issue or private placement to institutional investors.

The company is looking to raise more than Rs 3,500 crore through this process.

In a regulatory filing, DLF informed that the two special resolutions have been passed by the shareholders with requisite majority.

In late August, the promoters had sold the entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore.

This deal included sale of 33.34 per cent stake in DCCDL to Singapore s sovereign wealth fund GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.

This deal closed yesterday, paving the way for promoters to infuse capital into DLF for significant reduction in debt that stood at nearly Rs 27,000 crore at the end of second quarter of this fiscal.

On December 1, DLF board had approved the preferential offer and issue of upto 37.97 crore compulsorily convertible unsecured debentures (CCDs) to the promoters for cash.

The debentures would be converted into equivalent number of equity shares at Rs 217.25.

That apart, the board had approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into shares at the same price.

Upon completion of the issue of debentures and warrants and conversion into equity shares, “the total additional amount of promoter/promoters group s equity contribution to the company will be approximately Rs 11,250 crore”, DLF had said.

The board had approved the offer and issue upto 17.30 crore equity shares to eligible investors, in one or more tranches, in India or overseas, by way of public issue or a private placement or a qualified institutional placement.

The shareholders approved increase of authorised share capital of the company from Rs 500 crore to Rs 1,000 crore as well as the appointment of Ashok Kumar Tyagi and Devinder Singh as Whole-Time Directors of the company for a period of five years with effect from December 1, 2017.

This is published unedited from the PTI feed.