JOIN USThe gross realisation of a share price works out to Rs 230 per share, a 2.6 per cent discount to the previous day’s closing price – considered as one of the tightest achieved in recent times for transactions of this size. The stake sale by promoters was intended to help the company beef up the capital directly or indirectly on DLF Assets (DAL) and in turn, help the promoter group to buy commercial properties from DLF to earn lease rentals. “The money infused into DAL would be used by it to pay to DLF towards its contractual obligations,” the company said in a statement. The promoters may also use part of the net proceeds towards the purchase of D E Shaw’s interest in DAL, it said.
Further, the transaction seeks to alleviate investor concerns regarding DAL liquidity, besides reducing the net exposure to DAL in DLF books.
The transaction has nearly doubled the free float of the company from 11.4 per cent to 21.3 per cent, which will result in a corresponding rise in the Company’s representation in various indices in due course.
Commenting on the transaction, DLF Vice Chairman Rajiv Singh said “We are pleased to follow through our commitments with this game changing transaction for the company and thanks the investor community for their continued. He assured the investors that the Company won’t dilute any more holding going forward and it expects to be debt free company in the next few months.
J P Morgan and Deutsche Bank executed the transaction for the promoter group.