Seeing traction in luxury segment; to mull MBS: DLF's Tyagi

The company pays roughly Rs 750 crore interest every month, including dividend on preference shares, on its debt. Tyagi says the lower borrowing rate should help the company save around Rs 175 crore on dividend payouts.

Following a favourable verdict from the Securities Appellate Tribunal (SAT), DLF is now looking at options to raise fund, says Ashok Tyagi, group CFO. The SAT quashed Sebi’s order barring DLF and its promoters from raising capital for alleged disclosure lapses in its initial public offering in 2007.

In an interview to CNBC-TV18, Tyagi says DLF is considering issuance of commercial mortgage backed securities, which will help reduce its cost of borrowing by 1.5-2.0 percentage points.

The company pays roughly Rs 750 crore interest every month, including dividend on preference shares, on its debt. Tyagi says the lower borrowing rate should help the company save around Rs 175 crore on dividend payouts.

He says there is good demand in the luxury residential property segment, while the mid-market segment remains sluggish.

Tyagi denies reports of private equity firm Blackstone being in talks to buy a stake in DLF.

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