Debt-ridden DLF Plans to Raise Funds
Debt-ridden realty player DLF has announced its intention to sell additional land and its wind power business during the current financial year. The aim is to raise Rs 1,900 crore and reduce its debt. Additionally, DLF has revised its sales figure for flats downward.
Debt Management Strategies
DLF started the financial year 2009-10 with total debt exceeding Rs 14,000 crore. The company has been exploring various avenues to lower this debt, including the sale of promoters' equity and different projects. In the three months ending June, DLF succeeded in selling 2500 flats.
Unitech's Success
In contrast, rival Unitech has managed to reduce its debt to below Rs 5,000 crore. Reports indicate that Unitech now has a cash surplus.
Stock Market Performance
Both DLF and Unitech saw appreciable gains in their share prices today. DLF shares surged by 11.44%, closing at Rs 330.10 per share. Unitech shares rose by 8.62%, closing at Rs 70.60 per share.
Land and Wind Power Sales
As part of its debt management plan, DLF has already sold land worth Rs 1,000 crore during the April-June period. The company is also planning to exit its wind power business, aiming to garner an additional Rs 900 crore to partially repay its debt.