DLF has shortlisted bidders for stake sale in its rental arm and has allowed access to virtual data room and vendor diligence reports, the
Real estate company DLF has shortlisted bidders for stake sale in its rental arm and has allowed access to virtual data room and vendor diligence reports, the company said after announcing the first quarter results.
The debt-laden company is looking to divest 40 per cent stake in its rental assets arm — DLF Cyber City Developers — and hopes to close the transaction before the end of this calendar year.
The stake sale is expected to leave DLF in funds, enabling it to substantially lower its debt which stood at ₹22,120 crore as on June 30. The company had announced plans to dilute stake in the rental arm in October last year.
According to industry estimates, the 40 per cent stake sale could fetch DLF up to ₹13,000 crore.
The Information Memorandum was circulated among the investors in April and multiple bids were received from sovereign funds and global private-equity firms in June.
“The company expects to receive binding, updated bids in the form of marked up shareholder agreements once the shortlisted bidders complete their due diligence,” it said in its analyst presentation, after first quarter financial results.
“On the development side, the company also continues to sell from the existing live projects, create finished stock in existing launched projects, ready to be sold when the demand scenario improves,” it added.
In the office space, DLF said that the current uptick on rentals continue. However new leasing momentum is impacted as it has virtually no inventory at most places. “Given this, the company is following a strategy to aggregate leasing in favour of ‘higher value’, large and high-credit customers,” it said.
Q1 numbers DLF reported a net profit of ₹261.42 crore in the April-June quarter against ₹125.87 crore reported in the corresponding quarter of the previous fiscal.
The company’s income from operations fell over 20 per cent to ₹1,867.46 crore (₹2,388.72 crore).
During the quarter, DLF had received proceeds worth ₹333 crore from PVR Ltd post sale of the real estate company’s cinema business ‘DT Cinemas’ to PVR.
This resulted in a one-time extraordinary gain of ₹372 crore which has been classified under exceptional items in the financial results. DLF is expected to receive the balance proceeds of ₹100 crore upon achievement of certain subsequent milestone, the company informed the BSE.
The finance costs for the company rose 20 per cent to ₹747.84 crore in the April-June quarter₹621.82 crore).