In late August, the promoters had sold the entire 40 per cent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore and proposed to invest proceeds into DLF.

This deal included sale of 33.34 per cent stake in DCCDL to GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.

DLF will use the funds to reduce net debt, which has surged to nearly Rs 27,000 crore.

In a late night regulatory filing, DLF stated that subsequent to fulfilment of all conditions specified in the agreement, the sale and purchase of the securities and other closing actions have been completed on December 26, 2017.

"Accordingly, the company and the investor (GIC) now hold 66.66 per cent and 33.34 per cent of the paid-up equity capital in DCCDL, respectively," DLF said in the filing.

According to sources, promoters have received Rs 8,950 crore from GIC and another Rs 1,600 crore from DCCDL as first tranche of the buyback of shares.

On December 1, the Board of Directors had approved the allotment of debentures and warrants to promoters in lieu of their investment of proceeds from this deal into DLF.

A board meeting will be held on December 29 to consider and approve the allotment of debentures and warrants to promoters group entities subject to and in accordance with terms to be approved by the shareholders at their Extra-Ordinary General meeting to be held on December 28.

The board had approved the preferential offer and issue of up to 37.97 crore compulsorily convertible unsecured debentures (CCDs) to the promoters for cash.

The debentures would be converted into equivalent number of equity shares at Rs 217.25.

That apart, the board approved the preferential issue of up to 13,80,89,758 warrants to the promoters being convertible into shares at the same price.

Upon completion of the issue of debentures and warrants and conversion into equity shares, "the total additional amount of promoter/promoters groups equity contribution to the company will be approximately Rs 11,250 crore."

The board also approved the offer and issue up to 17.30 crore equity shares to eligible investors, in one or more tranches, in India or overseas, by way of public issue or a private placement or a qualified institutional placement.

India's largest realty firm DLF Ltd. plans to raise around Rs 3,500 crore through sale of shares to institutional investors, sources earlier said.

Infusion of capital by promoters will lead to increase in promoters stake in DLF to more than 75 per cent. So, the company plans to launch a QIP or public issue to maintain the minimum public shareholding limit of 25 per cent.