NEW DELHI: Billionaire KP Singh and his family, promoters of the largest Real estate company DLF, are close to finalizing an agreement with foreign and domestic institutional investors who can recover around Rs crore in 3000, according to those familiar with the negotiations. Based on the closing price on Thursday of Rs 245, it would mean developers unload a little over 7% of the capital.
DLF CFO Ramesh Sanka denied that the developers had a plan to sell cause. But people familiar with the matter said Deutsche Bank was mandated in May and an agreement will be announced shortly. ET first reported the draft Thursday DLF sale Thursday.
Promoters own 88.55% in the company, according to the latest model of participation available on the NSE. It is understood that the promoters will reinvest the proceeds of the sale Thursday in DLF Assets (DAL), which in turn use the funds to pay for DLF properties purchased earlier. DAL, which is owned by KP Singh and investments of the Symphony of the United Kingdom and United Capital hedge fund DE Shaw buys DLF SEZ. At present, the claims of DAL is about Rs 4.900 crore.
Analysts have described the increase in LAD claims as the greatest source of concern for DLF. The real estate giant has been looking at multiple options to extinguish those claims DAL DAL merger with either itself or the conversion of debt into equity in DAL. Meanwhile, Shaw is also reported to find out DAL, and promoters of May use the proceeds from the sale of the investment to buy the game of hedge funds.
DLF reported a decrease of 93% of its profits for the fourth quarter and was forced by buyers to reduce prices in its ongoing projects, which had an impact on its Bottomline.
The company has postponed for several projects and now seeks to Rs 5.500 crore through the sale of assets to support its ongoing projects in a market where credit is tight and home and commercial space sales have slowed considerably.
The company ended Wednesday on its share repurchase program, after spending Rs 140 crore for the purchase of more than 76-lakh shares. Companies are generally redemptions to burn their extra money, which has no other productive use, and increase shareholder value. But DLF buyback move, which is in the midst of a deep recession in the real estate market has attracted criticism from analysts, who believed that society could better use the money to perform its projects.
DLF CFO Ramesh Sanka denied that the developers had a plan to sell cause. But people familiar with the matter said Deutsche Bank was mandated in May and an agreement will be announced shortly. ET first reported the draft Thursday DLF sale Thursday.
Promoters own 88.55% in the company, according to the latest model of participation available on the NSE. It is understood that the promoters will reinvest the proceeds of the sale Thursday in DLF Assets (DAL), which in turn use the funds to pay for DLF properties purchased earlier. DAL, which is owned by KP Singh and investments of the Symphony of the United Kingdom and United Capital hedge fund DE Shaw buys DLF SEZ. At present, the claims of DAL is about Rs 4.900 crore.
Analysts have described the increase in LAD claims as the greatest source of concern for DLF. The real estate giant has been looking at multiple options to extinguish those claims DAL DAL merger with either itself or the conversion of debt into equity in DAL. Meanwhile, Shaw is also reported to find out DAL, and promoters of May use the proceeds from the sale of the investment to buy the game of hedge funds.
DLF reported a decrease of 93% of its profits for the fourth quarter and was forced by buyers to reduce prices in its ongoing projects, which had an impact on its Bottomline.
The company has postponed for several projects and now seeks to Rs 5.500 crore through the sale of assets to support its ongoing projects in a market where credit is tight and home and commercial space sales have slowed considerably.
The company ended Wednesday on its share repurchase program, after spending Rs 140 crore for the purchase of more than 76-lakh shares. Companies are generally redemptions to burn their extra money, which has no other productive use, and increase shareholder value. But DLF buyback move, which is in the midst of a deep recession in the real estate market has attracted criticism from analysts, who believed that society could better use the money to perform its projects.
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