Real estate giant DLF Limited, stuck with a combination of property inventories and high debt, is reducing its debt by Rs 600 crore to Rs 1,000 crore every month.
DLF shares rose by 11.44 per cent on the Bombay Stock Exchange on Tuesday to close at Rs. 300.10.
“We are reducing our debt by Rs 600-Rs 1,000 crore every month as a part of our ongoing effort to halve it by the end of the fiscal,” Rajeev Talwar, DLF’s group executive director told reporters on Tuesday on the sidelines of an event organised by the Confederation of Indian Industry. “Some of it is through the funds raised from sale of land parcels and rest through our own cash.”
The country’s largest real estate developer has a long-term debt of Rs 13,958 crore and plans to halve it by the end of March 31, 2010.
Talwar said that the company had so far raised Rs 1,000 crore through sale of land plots and will raise another Rs 1,900 crore by the end of the financial year.
The company has 40 hotel plots across the country of which 19 are under construction while the remainder have been put up for sale.
Earlier this year, DLF, in an investor presentation stated it plans to raise Rs 5,500 crore through a combined sale of non-core assets like its wind and power business and land parcels earlier slotted for development of properties like hotels.
The rates of the housing units are down by 20-25 per cent than what prevailed in the country in 2007, Talwar said.