The Hindu Business Line : DLF to seek shareholders' nod for share split

Other plans
To launch Employees Stock Option Scheme for grant of options of up to 35 lakh equity shares
To make a preferential allotment of up to 3.5-crore equity shares of Rs 2 each at a price of at least Rs 64 per share.

New Delhi , April 14

Real estate developer DLF Universal has convened an extraordinary general meeting next week to obtain shareholders' nod on issues pertaining to equity share split and hike in authorised share capital of the company to Rs 500 crore, ahead its over Rs 10,500-crore initial public offer scheduled in June.

The company plans to sub-divide each equity share of Rs 10 into five equity shares of Rs 2 each, while the authorised share capital is proposed to be increased from the existing Rs 40 crore to Rs 500 crore by creation of 230-crore equity shares of Rs 2 each. The increase of the authorised share capital would enable and accommodate the proposed issue of shares to the public.

The EGM - scheduled for April 20 - would also consider the board of directors' recommendation (made on April 7) that every equity shareholder as on the record date be entitled to seven new equity shares as bonus shares for each existing equity share held by them, sources said.

ESOP scheme

DLF also proposes to launch an Employees Stock Option Scheme for grant of options of up to 35 lakh equity shares for employees of the company and its subsidiaries. The exercise price would be Rs 2 per option (face value of Rs 2 per equity share), sources said, adding that these options would vest not earlier than one year and not later than ten years from the date of grant.

Preferential allotment

The company also plans to make a preferential allotment of up to 3.5-crore equity shares of Rs 2 each at a price of at least Rs 64 per share. The EGM notice circulated to the shareholders also seeks to "create, offer and issue to the public such number of equity shares of face value of Rs 2 each not exceeding 20 crore in number as may be required for subscription for cash at such a premium per share as may be fixed and determined by the board prior to the issue... "

The company may also exercise a `green shoe option' to the extent of 15 per cent of the total issue size.

More Stories on : IPOs | Stocks | Real Estate & Construction | ESOPs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Progeon brand on its way out

Shree Renuka Sugars to raise $40-50 m thru ECB

Riga Sugar plans public issue or GDR

Geneva acclaim for Krishna Industrial

Re-structuring hampered

Netherlands co picks up stake in Team HR Services

Hyundai plans second engine, transmission plant in India

Hero Honda says strike won't impact profitability

DLF to seek shareholders' nod for share split

Kamdhenu Ispat IPO oversubscribed

MSPL eyes mines in Australia, Brazil