Investors give thumbs down to DLF rental arm deal; stock drops 3%
NEW DELHI: Shares of DLF dropped 3 per cent in Thursday’s trade after promoter KP Singh and his family decided to offload his entire 40 per cent equity in the rental arm space DLF Cyber City Developers (DCCDL) to Singapore-headquartered private equity firm GIC, formerly known as Government of Singapore Investment Corporation.
The statement issued by the company did not divulge the deal figure. Sources in the company told TOI that the deal could be worth around Rs 14,000 crore ($2 billion). At this price, DLF's rental arm DCCDL could be valued at around Rs 35,000 crore.
However, DLF investors did not cheer the development. The stock fell 2.7 per cent to hit a low of Rs 149.40 on BSE.
TOI reported that promoters will invest the proceeds from the sale back to the company. This will lead to increase their holding in DLF beyond 75 per cent. At present, they hold 74.9 per cent of the total paid-up capital.
TOI had reported about GIC leading the race in June last year.
The statement issued by the company did not divulge the deal figure. Sources in the company told TOI that the deal could be worth around Rs 14,000 crore ($2 billion). At this price, DLF's rental arm DCCDL could be valued at around Rs 35,000 crore.
However, DLF investors did not cheer the development. The stock fell 2.7 per cent to hit a low of Rs 149.40 on BSE.
TOI reported that promoters will invest the proceeds from the sale back to the company. This will lead to increase their holding in DLF beyond 75 per cent. At present, they hold 74.9 per cent of the total paid-up capital.
TOI had reported about GIC leading the race in June last year.
