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MUMBAI: Realty developer DLF deferred a planned private placement of 173 million shares that was part of the company’s fund-raising exercise to become debt-free by March 2019.
The board decided to seek fresh shareholder approval for the issue, with the current validity set to end on December 26, DLF said in a stock exchange filing on Wednesday.
Separately, the company said group chief financial officer Saurabh Chawla had resigned to explore new professional opportunities.
Chawla, who had been associated with DLF for 12 years in various capacities, was elevated as group CFO in December 2017.
Ashok Kumar Tyagi, a wholetime director who was group CFO until December 2017, will assume responsibility and functions of the role.
He will work with Chawla to ensure a seamless transition, which is expected to be completed by January, the company said.
DLF’s net debt currently stands at about Rs 5,500 crore, following the formation of a joint venture with Singapore’s sovereign wealth fund GIC.
The company repaid some bank loans and transferred a substantial part of its debt to the rental business joint venture.
Following the GIC venture, DLF promoters KP Singh and family infused Rs 9,000 crore in the company and they are expected to infuse an additional Rs 2,250 crore over the next few months.
An infusion of funds by the promoters would lead to a rise in their shareholdings above the permissible limit of 75 per cent.
