India's largest realty firm DLF will wait for the capital market to stabilise to launch its QIP for raising about Rs 4,000 crore.
"We are waiting for a calmer market to launch QIP (Qualified Institutional Placement)," DLF's group CFO Saurabh Chawla said in a conference call with analysts.
DLF plans to issue up to 17.3 crore shares to qualified institutional investors to raise funds as part of its target to become debt free. The company has a debt of over Rs 7,000 crore.
"Internally, we are fully prepared to launch QIP whenever market gives us an opportunity," Chawla said, adding that the market is currently volatile amid liquidity crisis among the non-banking financial companies (NBFCs).
He said the company has yet to appoint any merchant bankers for the proposed issue.
In an analyst presentation, DLF said it is targeting to bring down net debt to zero for its development business over the next few quarters.
To achieve this objective, the company said the promoters would infuse Rs 2,250 crore in the current fiscal besides raising capital through QIP.
"The company's business model entails all construction spend to be financed from receivables outstanding as on March 31, 2018. Additional receivables shall result into operating surplus," the presentation said.
DLF said it remains focussed to monetise its finished inventory of about Rs 12,900 crore over a period of time, resulting in surplus cash flows which would primarily be utilised for debt reduction and the balance is targeted to for reinvestment in projects and to build up cash reserves.
(With inputs from agencies.)