India's largest realty firm DlF on Monday sought shareholders' approval to raise up to Rs 5,000 crore through private placement of non-convertible debentures.
In a filing to the BSE, DlF informed that shareholders nod has been sought through postal ballot for reducing borrowing power of the company's board of directors to Rs 30,000 crore from earlier Rs 50,000 crore.
To augment long term resources for business needs, DlF said the shareholders consent has been sought to authorise the Board to offer NCDs (Non-Convertible Debentures) in one or more tranches up to Rs 5,000 crore through private placement on preferential basis.
In two separate special resolutions, DlF proposed to obtain members' nod to enable the Board to borrow money up to Rs 30,000 crore, excluding temporary loans from the company's bankers in the ordinary course of business, and also secure these borrowings by creating charge/mortgage on assets.
In April 2006, the shareholders had approved borrowing over and above the aggregate of paid-up share capital and free reserves provided the total amount, together with that already borrowed and outstanding at any point of time, does not exceed Rs 50,000 crore.