DLF plans to raise $400-500 mn through private placement

Struck by the weak global credit market, DLF Assets is planning to raise capital amounting between $400 mn and $500 mn through private placement by the end of December or beginning of fourth quarter 2008-09.

Struck by the weak global credit market, DLF Assets is planning to raise capital amounting between $400 mn and $500 mn through private placement by the end of December or beginning of fourth quarter 2008-09.

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“The process is on and is as per the plan outlined in the second quarter presentation,” said the company spokesperson.

The company is raising funds in order to fund the payment it has to make for the asset purchase of DLF Limited.

The company is reported to be in talks with private equity players -- JP Morgan and Texas Pacific to raise the said amount

DLF Ltd has accounts receivable of Rs 4,806 crore from DAL and DAL has to make these payments to DLF.

DLF Ltd has already sold 4.7 million square ft area to DAL, which it manages and earns rental from. DLF will transfer another 5 million to DAL by March 2009.