Shares of DLF today surged over 6 per cent ahead of its board meeting on Friday to decide on promoters' proposed sale of 40 per cent stake in rental arm to investment firm GIC in a deal estimated at around Rs 13,000 crore.
Shares of DLF today surged over 6 per cent ahead of its board meeting on Friday to decide on promoters’ proposed sale of 40 per cent stake in rental arm to investment firm GIC in a deal estimated at around Rs 13,000 crore. The stock soared 6.10 per cent to settle at Rs 186 on BSE. Intra-day, it jumped 7.81 per cent to Rs 189. On NSE, it surged 6 per cent to close at Rs 185.95. The company’s market valuation also rose by Rs 1,909.8 crore to Rs 33,182.80 crore. In terms of equity volume, 20.18 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day. DLF had announced in October 2015 that promoters would sell their entire stake in DLF Cyber City Developers Ltd (DCCDL) that holds the bulk of commercial assets of the group. The company had in March this year entered into an exclusivity pact with Singapore’s sovereign wealth fund GIC to negotiate on this transaction. The promoters holds Compulsorily Convertible Preference Shares (CCPS) in DCCDL, which is worth 40 per cent stake in the rental arm. DLF owns the rest 60 per cent in DCCDL.
In a regulatory filing, DLF said that a meeting of the audit committee will be held on August 25 to “consider and review the status of the proposed sale of CCPS held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board”. “The board will, in its meeting scheduled to be held later on August 25, 2017, consider the said recommendations and take appropriate decisions, as required,” it added. Last week, sources had said that both the parties — DLF promoters and GIC — could sign definitive agreement by end of this month and pegged the deal value at around Rs 12,000- 13,000 crore.
The promoters — K P Singh and family — would infuse a large portion of proceeds from this proposed deal into DLF, which in turn would use this amount to cut its net debt that has reached nearly Rs 26,000 crore.