 |
|||||
|
|
||||
|
|||||
|
||||||||||||
DLF Cuts Funds For Building Ops To Pay Off LoansBy ugesh sarkar, Section Gurgaon Real Estate Property
It seems construction has taken a back seat at realty major DLF Ltd.
Tightening economic conditions amid recession in the real estate market has forced the real estate major to revise the deployment of the proceeds from its mega initial public offering ( IPO) of 2007 to repaying loans and buying more land.  The firm has submitted to the Bombay Stock Exchange ( BSE) and the National Stock Exchange ( NSE) a copy of the IPO Monitoring Agency Report for utilisation of IPO proceeds for the half year ended December 14, 2009, duly noted by the Audit Committee and Board of Directors at their meetings held on January 27, 2010. As per the report, the company has tweaked the deployment plans of the original IPO funds laid out in the offer document by diverting it to acquire more land and repay loans. Details of the latest cost of projects clearly show that the firm had drastically reduced the original allocated funds for development and construction of existing projects. As per the offer document, the original deployment cost on the development and construction for existing projects was Rs 3,493.40 crore. The firm later lowered it to Rs 636.25 crore. The total revised amount comprising land acquisition, development rights and prepayment of loans is around Rs 8,247.57 crore against the earlier amount of Rs 5,428.10 crore.  The company had raised around Rs 9,186.80 crore through the IPO in 2007. In its statement filed with the bourses, the firm said it has utilised the entire IPO proceeds. When contacted, the DLF spokesperson didn't respond to the queries sent by M AIL T ODAY till the time of filing the story.
Commenting on the drastic reduction in developmental costs, chairman and managing director of Prime Database Prithvi Haldea said, " Companies often revise their IPO proceeds depending on the dynamic market conditions. Click On "Full Story" For More...
When there is no customer to buy the dwelling units, the real estate company would divert funds to repay loans and acquire more lands. But if it is done within the permitted legal ambit and with the board's approval, the move is justified." But he added whenever a small change or revision is done small shareholders should be given an exit route. The company has posted a 30.2 per cent drop in consolidated net profit for the third quarter ended December, 2009 to Rs 467.8 crore but said that demand was robust across all segments of housing and there are signs of recovery in leasing of office space. The net profit was more or less in line with analysts' expectations. The net profit was lower on a year- on- year basis as DLF had suspended sales to DLF Assets Limited ( DAL) since the fourth quarter of FY' 09. DLF's consolidated revenue jumped 43 per cent to Rs 2,152 crore compared with the revenue earned in the year- ago period. Sequentially, profit after tax ( PAT) was up six per cent and revenue rose 19 per cent over the second quarter of FY' 10.
DLF Cuts Funds For Building Ops To Pay Off Loans | 0 comments (0 topical, 0 hidden) | Post A Comment
Related Links. real estate. office space . QBTPL . DLF Cuts Funds For Building Ops To Pay Off Loans . Also by ugesh sarkar |
|
All trademarks and copyrights on this page are owned by their respective companies. Comments are owned by the Poster. The Rest (c) GurgaonSCOOP.com and QBTPL. |
| Home | Ask Questions | Computer Gupshup | Free Member Diaries | Contact Us - Sanjay @ 98 712 19911 |
