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DLF plans townships in Chandigarh, Shimla

June 05, 2007 15:29 IST
Leading real estate developer DLF Ltd, which is aiming to raise up to Rs 9,625 crore  (Rs 96.25 billion) through its initial public offer, plans to set up three townships in Chandigarh and its suburbs and Shimla.

The township projects in the union territory and its periphery would be built on an area of 200 acres and 150 acres respectively, while the Shimla project would come up on a 102 acre plot, company sources said on Tuesday.

"The company is yet to finalise the investment on these three projects, as the land has been acquired only recently," a source said.

DLF also plans to start a residential project on 25 acres of land in Haryana's Sonepat, bordering the national capital, while ten acres of land has been kept aside for setting up two shopping malls in Panipat.

In Punjab, the company plans to set up retail projects in Ludhiana, Jalandhar and Amritsar, which will comprise of shopping malls and house offices among other things.

The DLF City Centre spread over 1.9 lakh square feet of area at Information Technology Park here with retail, food courts and DT cinema would be inaugurated soon, the sources said.

Meanwhile, addressing a press conference in Chandigarh on Tuesday, Chief Financial Officer, DLF Retail, Joy Saxena said the company would enter the capital market on June 11 with a public issue of 17.5 crore equity shares of Rs 2 each through 100 per cent book building process.

"Out of the net proceeds of the issue, DLF Ltd proposes to utilise Rs 3,500 crore (Rs 35 billion) for acquisition of land and development rights, Rs 3,493.4 crore (Rs 34.93 billion) for development and construction costs for existing projects and the remaining amount for prepayment of loans of the company," he said.

The company has fixed a price band of Rs 500-550 per share for the IPO.

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