New Delhi: Real Estate major DLF Universal may invest over Rs 1,00,000 crore in next seven to 10 years in both its existing and new business ventures.
As per available information, bulk of these investments would be made in the three new businesses - hospitality, SEZs and infrastructure. In each of these businesses, the Group, which is coming with a mega IPO in next couple of weeks, would take leading global players as partners.
"We are in the business of real estate development including residential, commercial and retail properties, and we intend to diversify into new businesses such as hotels, SEZs and infrastructure," DLF said in a draft prospectus submitted the market regulator SEBI.
In the core sector of the business like house, offices and shops and other purely real estate development, the company will be go on its own, but in new businesses, DLF is planning to enter into partnership for each category.
According to sources in the know, the new business would have an investment of up to Rs 60,000 crore and DLF would have majority stake of 51 per cent or more in the partnerships.
Although the company has begun looking for partners for each new business, sources declined to divulge details. In the hospitality business, DLF has tied up with global hotel chain Hilton.
The company is also talking to various other global brands like Four Seasons and Peninsula for luxury hotel segment, sources said.
The investments in the new business would be in the debt-equity ratio of 70-30 per cent and going by this, DLF would be putting in up to Rs 10,000 crore each as equity in hospitality, SEZ and infrastructure projects, sources said.
With the current debt at about Rs 5,000 crore the company would be in a position to raise huge debts in the post IPO scenario, sources said.
The company has also retained an option of retiring all the debts after IPO, using its proceeds.
The company had said earlier its IPO would be the largest in the history of India's capital market, meaning it would garner over Rs 10,500 crore that was raised by ONGC about three years back.
The market sources estimate that DLF IPO could be in the range of Rs 13,000 crore to Rs 14,000 crore depending on the condition at the time when it enters the market.
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