Business Mantra News
India’s one of the largest Realty Firm DLF has concluded the sale of 33.34 per cent stake in rental arm to Singapore’s Sovereign Wealth Fund GIC for nearly Rs. 9,000 Crores.
In August, 2017 the promoters had sold the entire 40 % shares in rental arm DLF Cyber City Developers Ltd. (DCCDL) for Rs. 11,900 Crores and proposed to invest proceeds into DLF.
The deal stipulates for the sale of 33.34 per cent shares in DCCDL to GIC for Rs. 8,900 Crores and buyback of remaining shares worth Rs. 3,000 Crores by DCCDL.
With the closure of this deal, DLF promoters have received Rs. 8,950 Crores from GIC and another Rs. 1,600 Crores as first instalment of the buyback from the rental arm, DLF Cyber City Developers Ltd (DCCDL).
DLF will use the funds to reduce net debt, which has swelled to nearly Rs. 27,000 Crores.
On 26th December 2017, DLF have completed all the formalities of sale and purchase of the Securities and other fulfilled other conditions.
After the closure of this deal, the company and the investor (GIC) now hold 66.66 per cent and 33.34 per cent of the paid-up equity capital in DCCDL, respectively.
DLF has planned to raise around Rs.3,500 Crores through sale of shares to Institutions.
Infusion of Capital by Promoters will lead to increase in promoters’ shareholding in DLF to more than 75 per cent. Now, the company has a plan to bring out a QIP or public issue to maintain the minimum public shareholding limit of 25 per cent.