DLF has been selling its non-core assets such as hotels and plots in the last few years to cut debt. So far, the company had raised Rs3,480 crore from sale of non-core assets
The country's largest realty firm DLF expects to pare its debt burden of over Rs22,500 crore to less than half in the next two years. As part of the strategy to bring down its total debt to about Rs10,000 crore by 2013, the firm is closing in on a few deals of to sell non-core assets, including Amanresorts.
"The plans are in place to reduce the debt by Rs6,000 crore-Rs7,000 crore in the next 18 months by selling non-core assets," a source said. Along with sale of non-core assets, the company is also banking on increased revenues to help cut the debt.
"If the cash flows remain good and sales continue at a comfortable rate, the debt of the company will come down to around Rs10,000 crore level in the next two years," the source said.
DLF is likely to generate Rs1,800 crore-Rs2,000 crore revenue in 2011-12 from rentals business that is growing 15% every year. The company's net debt rose by nearly Rs1,000 crore in the quarter ended 30 September 2011 to Rs22,519 crore from Rs21,524 crore as on 30 June 2011. It went up mainly due to delay in receipt of payments from non-core asset sales. The company expects to raise about Rs3,000 crore by March 2012 through sale of non-core assets such as IT Park in Noida, IT SEZ at Pune and hospitality business Amanresorts.
On selling its hospitality venture Amanresorts, DLF Vice Chairman Rajiv Singh had said: "We are likely to close the deal by next quarter. We have got bids from many players and all of them are international firms." He did not comment on the valuation of the deal that would include 29 properties of the hospitality chain that DLF had acquired in 2007 for $400 million. Sources, however, had said the company is expecting about Rs2,000 crore-Rs2,500 crore from the deal. It is also understood that DLF will retain the Delhi property of the Amanresorts.
DLF has been selling its non-core assets such as hotels and plots in the last few years to cut debt. So far, the company had raised Rs3,480 crore from sale of non-core assets. Earlier this year, DLF had announced plans to raise Rs7,000 crore in the next 2-3 years.
In the late afternoon, DLF was trading at around Rs208.50 per share on the Bombay Stock Exchange, 2.23% up from the previous close.
Birla Sun Life MF new issue closes 12th December
Birla Sun Life Mutual Fund has launched Birla Sun Life Capital Protection Oriented Fund-Series 8, a close-ended income scheme.
The investment objective of the scheme is to provide capital appreciation linked to equity market with downside protection at the end of tenure. Also, the fund expects to achieve down side protection by investing in debt securities with tenure comparable with the tenure of the plan, subject to the credit risk. Further, the fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options. The tenure of the scheme is 25 months.
The new issue closes on 12 December 2011. The minimum investment amount is Rs5,000.
CRISIL Balanced Fund Index is the benchmark index. Satyabrata Mohanty and Ajay Garg are the fund managers.
UTI Knowledge Caravan will cover the states of Maharashtra and Gujarat. During its journey it will cover more than 14,000km in about 260 days
UTI Mutual Fund flagged off its second UTI Knowledge Caravan from Mumbai on 16th November as part of its Investor Education Initiative called “Swatantra”. The Investor Education Initiative is in partnership with Ministry of Corporate Affairs, Government of India.
This Caravan will cover the states of Maharashtra and Gujarat. During its journey it will cover more than 14,000km in about 260 days.
As a part of this initiative four UTI Knowledge Caravans will travel through the country for spreading financial literacy. The first Caravan was flagged off on October 31, 2011 from Delhi.
UTI Mutual Fund will conduct Investor Meets for investors specifically targeting hatt, mandis, SME clusters and various industrial areas. UTI Mutual Fund will also conduct educational programs at schools and colleges to spread the message of savings and investments to the youth of India.
UTI Mutual Fund will cover more than 510 cities/towns and 6000 villages. The Investor Education Initiative will be conducted in 13 different languages.