NEW DELHI: Real estate major DLF plans to raise $5 billion over the next three years by listing five of its business units, including DLF Homes, DLF Retail, DLF Hotels, DLF Utilities and DLF Infrastructure. There are no plans to further dilute equity in group flagship DLF. The eventual strategy is to make DLF a holding company with considerable equity stakes in the listed entities in addition to being an incubator for new businesses.
In all, the company is looking at a fund infusion of $10-12 billion in its various businesses over the next three years. “We gradually plan to bring IPOs for all our major business units, excluding finance,” DLF group chief finance officer Ramesh Sanka told ET.
The $5-billion group will raise the fund through domestic IPOs in addition to Singapore listing of DLF Assets (DAL), the company which own the office space development and management business of the group. At present, the company is awaiting regulatory approvals for this IPO. “We hope to hit the Singapore capital markets by the first quarter of next year,” Mr Sanka said. While Mr Sanka refused to divulge the size of the DAL float, the buzz is that it will be a $2-2.5 billion issue.
All other business units of the company are expected to be listed in Indian capital markets only. “As of now, we are not looking at any other overseas market,” Mr Sanka said. In addition, the company would look at options of raising funds by diluting equity in some of its ongoing projects as well. “We are open to private equity as well as strategic investment in special vehicles at project levels,” he said.
The company is also looking at aggressively expanding the retail and hospitality businesses. “We will not mix our retail business with real estate. We are looking at joint venture opportunities with various foreign brands. But in this model, real estate will not be our basis of equity. We would participate as financial investors,” he said.
Even if the company ties up with a supermarket chain, it would stick to this model. DLF has been reported to be in talks with French retailer Carrefour. “We are in talks with various players. I can’t comment on any specific deals at this point of time,” Mr Sanka said.
In all, the company is looking at a fund infusion of $10-12 billion in its various businesses over the next three years. “We gradually plan to bring IPOs for all our major business units, excluding finance,” DLF group chief finance officer Ramesh Sanka told ET.
The $5-billion group will raise the fund through domestic IPOs in addition to Singapore listing of DLF Assets (DAL), the company which own the office space development and management business of the group. At present, the company is awaiting regulatory approvals for this IPO. “We hope to hit the Singapore capital markets by the first quarter of next year,” Mr Sanka said. While Mr Sanka refused to divulge the size of the DAL float, the buzz is that it will be a $2-2.5 billion issue.
All other business units of the company are expected to be listed in Indian capital markets only. “As of now, we are not looking at any other overseas market,” Mr Sanka said. In addition, the company would look at options of raising funds by diluting equity in some of its ongoing projects as well. “We are open to private equity as well as strategic investment in special vehicles at project levels,” he said.
The company is also looking at aggressively expanding the retail and hospitality businesses. “We will not mix our retail business with real estate. We are looking at joint venture opportunities with various foreign brands. But in this model, real estate will not be our basis of equity. We would participate as financial investors,” he said.
Even if the company ties up with a supermarket chain, it would stick to this model. DLF has been reported to be in talks with French retailer Carrefour. “We are in talks with various players. I can’t comment on any specific deals at this point of time,” Mr Sanka said.
No comments:
Post a Comment