DLF is up by 8 per cent intraday

DLF is India’s leading real estate developer company and has more than six decades of track record of sustained growth, customer satisfaction, and innovation. DLF is primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties. The Company has a unique business model with earnings arising from development and rentals.

The company yesterday declared that its shareholders have approved the resolution to create charge, lien or pledge on its over 50 per cent shares in three subsidiaries, holding rental commercial assets, for raising up to Rs 7500 crore. Shareholders also approved another special resolution to lease and create charge, lien, mortgage, hypothecation, etc exceeding 20 per cent of the assets of these three subsidiaries- DLF Cyber City Developers Ltd, Caraf Builders & Constructions Pvt Ltd and DLF Assets Pvt Ltd.

DLF holds 100 percent equity shareholding in these three subsidiaries, which are in the business of developing and leasing of office space, IT Park/SEZ and retail properties.

To improve long-term resources and to raise the necessary finance through loans, lease rental discounting, commercial mortgage backed securities (CMBS), bonds and any other instruments of similar nature for the business operations, the company may be required to create charge, lien, pledge and encumbrances of any nature/kind, in one or more tranches, exceeding 50 percent of the company's shareholding in the material subsidiaries.

These resolutions were approved by the shareholders at the company’s annual general meeting held on August 28. Through a notice to the AGM, DLF got shareholders approval to create charge, lien, pledge and other encumbrances of any nature/kind, exceeding 50 per cent of the company’s shareholding in the material subsidiaries

Also, Yesterday on 2nd september 2015, DLF Home Developers a wholly owned subsidiary of DLF and GIC, Singapore’s sovereign wealth fund, entered into a joint venture to invest in two upcoming projects located in Central Delhi. Both projects will be developed under DLF Home Developers. GIC will invest a sum of approximately Rs 1990 crore. This Joint Venture is expected to benefit from GIC’s experience of investing in integrated developments across the globe. DLF also believes this big deal with GIC would help the company to cut debt by half.

Today DLF climbs 8 per cent at Rs.119 after the company announcement.