DLF Ltd, India's biggest property developer by sales, has more than doubled its fund-raising target, from Rs4,500 crore to Rs10,000 crore ($2.2 billion).
The company plans to sell some non-core assets over the next two to three years to generate cash for its core property development business and cut debt. It also expects higher realisations from the sale of some businesses in the current fiscal.
In a presentation to analysts after announcing results for the fourth quarter and year ended 31 March, DLF said it has raised Rs3,070 crore so far by selling non-core assets, including Rs1,270 crore last year. The company expects to raise the rest in two to three years.
In fact DLF has been seeking to sell several of its non-core business units, such as hotels and resorts. It recently sold its stake in an insurance venture with US-based Prudential Financial Inc as part of the process.
Hurt by a slowdown in property prices over the last couple of years, the company reported a 19 per cent drop in fourth-quarter net profit, mainly due to costs that more than doubled.
Net profit for the January-March period fell to Rs345 crore from Rs426 crore a year earlier.