Realtor DLF Ltd, saddled with high-cost loans amid a demand slowdown, has raised a total of Rs 1,700 crore in debt from state-owned Punjab National Bank and Life Insurance Corp over the past month to repay short-term debt, company officials and industry sources said on Monday.
DLF has obligations adding up to Rs 14,000 crore and of this, Rs 3,000 crore must be returned by March.
“This is not a fresh debt. We are raising this to repay our immediate debt with long term loans,” group executive director Rajeev Talwar told Hindustan Times.
Industry sources said DLF is raising Rs. 1,000 crore from PNB and the remainder from LIC.
Talwar confirmed the loans but did not give the break-up.
He said the new loans were being raised at 13 or 14 per cent rates, with tenures ranging between 3 and 9 years.
With just couple of months left for this financial year to end, troubled realtors are trying different means to raise money in this present volatile market.
Earlier, the country’s second largest listed developer Unitech Ltd, was said to be in talks with public sector banks to raise Rs. 800 crore to save itself from its mounting debt obligation of Rs. 2,700 crore due to be repaid by March 2009.
In an effort to prop up its falling shares, DLF spent money to buy back 17.15 lakh shares at Rs 193.4 per share. Total shares bought back as on January 9 added up to Rs 38.5 lakh shares.
Realty stocks, apparently hit by overall sentiment and the Satyam-fraud-scarred Maytas Infrastructure, slipped by 5 per cent in Mumbai on Monday.
DLF closed down by 5.45 per cent at Rs. 205.75 at the BSE (Bombay Stock Exchange) and down by 5.36 per cent at Rs 204.75 on the NSE (National Stock Exchange).