DLF plans buyback of shares for $255 millionJuly 10th, 2008 - 5:11 pm ICT by IANS
New Delhi, July 10 (IANS) DLF Ltd, India’s largest developer by revenue, has decided to invest Rs.11 billion ($255 million) to buy back shares after its stock fell 57 percent this year. The company, about 88 percent owned by its chairman Kushal Pal Singh and other founders, will buy back 22 million shares from investors at no more than Rs.600 a share over the next 12 months, the company said in a regulatory statement.
The buyback price will be 33.24 percent higher than the stock’s last average closing price on the Bombay Stock Exchange July 9.
Real estate stocks have performed poorly this year on weak investor sentiments. The 14-member Realty Index fell 62 percent this year.
Additionally, the central bank’s regulatory policy to contain inflation resulted in interest rates increasing to its highest in six years. This, coupled with lack of disposable income also deterred buyers.
DLF’s shares, which rose as high as Rs.1,207.5 January 14, were among the worst performers on the benchmark Sensitive index during the quarter ended June 30.
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