DLF sizzles on reports of being debt free
DLF is buzzing on bourses on Wednesday due to reports of promoters decision to wipe out DLF Ltd's debt in a two-step transaction. DLF is up by almost 8.55 per cent at Rs. 144.95 per share at 9.50 am.
Promoters will be pumping Rs 10,000 crore into DLF. The Singh family will be selling its 40 per cent stake in DLF Cyber City Developers Ltd. (DCCDL) for Rs 12,000-13,000 crore to sovereign funds or pension funds. The same money is expected to be used to retire the debts of DLF.
According to media reports DLF may raise close to Rs 3,000 crores from institutional investors in order to ensure that the promoter stakes doesn't go beyond 75 per cent.
The deal values the DCCDL at Rs 30,000 and is expected to be closed by September 2016. With 40 per cent shares to be offloaded, promoters are expected to fetch around Rs 12,000 crores and the same money will be infused in DLF by way of preferential issue of shares.
The stock has hit 52 w high at Rs 146.40 per share. DLF has given close to 25 per cent returns on 1 year basis thus outperforming markets.