India’s largest real estate developer, DLF, has sold off a part of its wind energy business — 150 MW wind turbines in Gujarat — for R282.30 crore to a subsidiary of Bharat Light & Power as part of its plan to exit non-core businesses.
In a notice to the Bombay Stock Exchange, DLF said on Thursday, “The company has entered into definitive business transfer agreement with BLP Vayu (Project 1), a subsidiary of Bharat Light & Power, for transferring its undertaking comprising of 150 MW capacity wind turbines situated at Kutch, Gujarat, by way of slump-sale for a lump sum consideration of R282.30 crore.” The shareholders of the company had approved the sale in July, 2012, the notice said.
Under its wind energy portfolio, DLF along with its wholly owned subsidiary DLF Home Developers, has 227 MW capacity wind turbines in four states. Apart from Gujarat, the other locations are Rajasthan (33 MW), Tamil Nadu (34.5MW), and Karnataka (11.2 MW). The company intends to divest the entire portfolio and is believed to be expecting valuations of around R800-900 crore.
Over the last six months, DLF has aggressively sold its non-core assets to bring down its ballooning debt, which stood at R23,220 crore at the end of September 30, 2012 quarter. In August last year, DLF sold a 17-acre land parcel in Mumbai to Lodha Developers for R2,727 crore. In December 2012, it announced sale of Amanresorts back to its founder Adrian Zecha for about R1,650 crore.
“The transaction is in line with the DLF’s objective of divesting its non-core assets,” DLF said, adding that the deal would be completed on receipt of requisite regulatory approvals.
DLF’s share price closed 1.87% up at R277.80 on Bombay Stock Exchange on Thursday.