DLF promoters sell 10 percent stake for Rs.38.6 bn (Lead)

May 13th, 2009 - 2:57 pm ICT by IANS  

Mumbai, May 13 (IANS) Strapped for cash, Delhi-based realty major DLF Wednesday said its promoters have sold a 10 percent stake in the firm for Rs.3,860 crore (Rs.38.6 billion) to meet their contractual obligations and infuse money into another subsidiary.
Founded by Kushal Pal Singh, the promoters of the company may also use the proceeds for buying the stake held by technology investment firm D.E. Shaw in DLF Assets Private Ltd, the company said in a regulatory filing.

The transaction involving 168 million shares nearly doubles the floating stock of the company from 11.4 percent to 21.3 percent that will see a corresponding increase in the company’s representation in various indices of bourses in due course, the company said.

The sale implies a gross realisation of a price a little over Rs.230 per share, representing a 2.6 percent discount to the closing price May 12. “This is one of the tightest achieved in recent times globally for transactions of this size.”

The DLF scrip shot up 5.29 percent after the company issued the statement and was trading with a gain of 2.26 percent at Rs.240.65 a share at around 1 p.m.

“This transaction will put investor concerns regarding DLF Asset’s liquidity to rest, as well as reduce the net exposure to the company in DLF’s books,” said the company.

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