DLF EGM on Apr 20 for IPO; proposes 7:1 bonus | india | Hindustan Times
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DLF EGM on Apr 20 for IPO; proposes 7:1 bonus

The company would also split the shares with a face value of Rs 10 each into five shares of Rs two each.

india Updated: Apr 14, 2006 15:37 IST

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 stake holders and the decision could be taken at the Extraordinary General Meeting next week.

The company would also split the shares with a face value of Rs 10 each into five shares of Rs two 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 that an EGM has been convened on April 20 but refused to give further details.

The company has capitalised a sum of over Rs 264.37 crore from the standing to the credit of share premium account, general reserve account and credit of surplus as per profit and loss account as 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 Limited and the Central Depository services for crediting the bonus shares to the individual Depository Accounts of the allotees.

Authorisation to the board to create and issue upto Rs 23.50 crore equity shares of Rs 2 each at a price not less than Rs 64 per shares.

The EGM would also consider the increase in authorised share capital of the company to Rs 500 crore from the existing Rs 40 crore. The Rs 500 crore share capital would be divided into 249.75 crore equity shares of Rs 2 each and 50,000 redeemable preference shares of Rs 100 each.

DLF was delisted from the bourses in 2000-01 and at that time the share prices were ruling at about Rs 320 a share of Rs 10 each.