Tuesday, August 26, 2008

DLF - To raise capital

"DLF, the country's largest property developer, plans to seek shareholder approval to raise as much as Rs 10,000 crore from institutional investors over the next 12 months, the company said in a notice to shareholders
The company will place a special resolution for a qualified institutional placement (QIP) before shareholders at its annual general meeting (AGM) on September 30, the company said. DLF may sell shares to investors within 12 months of getting the approval"
I had in my earlier post on 3rd July on DLF questioned the logic of the management in announcing a share buyback when clearly the core business was slowing and capital was scarce for real estate companies.
Now a month down the line the management is back trying to take approval from shareholders a to raise about Rs 10,000 crores of capital from institutional investors by doing a QIP. What can i say?
I had speculated in my earlier post that no significant buyback will take place and i will stick to that speculation.

3 comments:

Anonymous said...

That really shows the quality of management the company has. I personally feel DLF does not have a high quality management team.
In this case they are behaving more like a politician; talking to hide the bigger issues on hand.

Ninad Kunder said...

Hi Anon

Yeah it reflects poorly on the quality of the management. I think its time to focus down on the business as opposed to spending time in proping up the stock through financial engineering.

Cheers

Ninad

Rohit Chauhan said...

Hi ninad
would be diffcult to find an honest and ethical management in a unethical and corrupt industry such as real estate in india

regards
rohit