BackDLF shares up 6% ahead of board meet to decide on GIC deal
On NSE, DLF shares surged 6% to close at Rs185.95. The company's market valuation also rose by ₹1,909.8 crore to ₹33,182.80 crore
Premium
New Delhi: Shares of DLF on Wednesday surged over 6% ahead of its board meeting on Friday to decide on promoters’ proposed sale of 40% stake in rental arm to investment firm GIC in a deal estimated at around Rs13,000 crore. The stock soared 6.10% to settle at Rs186 on BSE.
Intra-day, it jumped 7.81% to ₹ 189.
On NSE, it surged 6% to close at ₹ 85.95. The company’s market valuation also rose by ₹ 1,909.8 crore to ₹ 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% stake in the rental arm. DLF owns the rest 60% in DCCDL.
In a regulatory filing, DLF said that a meeting of the audit committee will be held on 25 August 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 Rs12,000- Rs13,000 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 Rs26,000 crore.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
