BackDLF promoters to sell 9.9% stake for raising funds
DLF promoters to sell 9.9% stake for raising funds
PremiumRealty check: DLF promoter K.P. Singh. Currently, a total of 88.5% stake in the real estate company is held by its promoters. Harikrishna Katragadda / Mint
New Delhi: Real estate barons K.P. Singh and his son Rajiv Singh will likely dilute their stake in DLF Ltd, the country’s biggest realty firm by market value, by 9.9% through market sales on Wednesday to raise up to Rs3,800 crore ($760 million), according to people familiar with the situation.
The promoters’ stake in DLF is currently 88.5%.
The proceeds of the stake sale are likely to be ploughed into DLF Assets Ltd, or DAL, an unlisted promoter company of K.P. Singh and family.
About $450 million of the proceeds will be used to buy out hedge fund DE Shaw and Co. from DAL, the people said.
It has been widely reported that DE Shaw wants to exit its investment in DAL. The people said DE Shaw was to exit DAL by the end of this month. The remaining proceeds of the stake sale could also be used to pay back DLF part of the money owed by DAL. As of 31 March, DAL owed DLF around Rs4,900 crore.
DLF’s stock on Tuesday closed at Rs236.25, up 3.55%, on the Bombay Stock Exchange.
The benchmark index, the Sensex, rose 4.07% and the BSE Realty Index, an index of 14 realty stocks, gained 3.77%.
cnbctv18@livemint.com
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