DLF expects to close GIC deal by Dec;Rs 13k cr infusion by Feb
Realty major DLF expects the sale of its promoters' stake in its rental arm to GIC for Rs 8,900 crore to be concluded by December and infusion of proceeds into the company by February 2018, a top company official said today.
DLF expects infusion of over Rs 13,000 crore into the company, including Rs 10,500 crore from promoters and another Rs 3,000 crore from institutional investors to maintain the minimum public shareholding norm.
The country's largest realty firm will use this fund to significantly reduce its debt which stands at over Rs 25,000 crore.
"DLF's public shareholders have approved the GIC deal.
GIC Singapore has also received the CCI approval. The final order is awaited after which the closing process will begin.
"We are hopeful of concluding this deal and subsequent infusion of funds into DLF within this fiscal year," DLF's Senior Executive Director (Finance) Saurabh Chawla told analysts.
Promoters will receive the proceeds in this calendar year and will infuse funds into DLF by February 2018, he added.
In late August, DLF promoters decided to sell their entire 40 per cent stake in DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore.
This deal included sale of 33.34 stake in the DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and a buyback of the remaining shares worth Rs 3,000 crore by DCCDL.
Post this deal, DLF will have 66.66 per cent stake in DCCDL.
DLF's CFO Ashok Tyagi said the company has started selling its flats from November 1 which was stopped since May because of implementation of the real estate regulatory law RERA.
The company has an unsold inventory of about Rs 15,000 crore, he added.
"Out of 15 million sq ft under construction in our residential business, 13 million sq ft will be completed by March next year. Around 8 million sq ft is ready to be handed over to customers shortly," Tyagi said.
DLF's CFO said that the company would explore the option of developing its land bank in partnership with local builders in locations like Bengaluru, Chennai and Hyderabad but not in Delhi-Gurgaon.
Chawla also said the company would not enter the affordable housing segment.
Yesterday, the company reported a 91 per cent fall in consolidated profit at Rs 17.88 crore for the quarter ended September against Rs 198.53 crore in the year-ago period.
Total income dropped 21 per cent to Rs 1,751.34 crore in the second quarter of this fiscal from Rs 2,225.66 crore in the corresponding period of the previous year.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.