DLF gains on Mumbai land sale reports

Shares in DLF gain 1% on local media reports that India's biggest property developer has agreed to sell a 17.5 acre plot of land in central Mumbai to private developer Lodha.

DLF is expected to get Rs 2,727 crore from the sale, a source with knowledge of the transaction told Reuters, adding the deal is likely be announced later today.

DLF and Lodha declined to comment.

"While the management is yet to confirm the development, we view this news as a significant positive as DLF is currently saddled with significant debt - reduction of which is crucial for a sustained stock performance," brokerage Edelweiss Research said in an email to clients.

Edelweiss estimated DLF's debts at Rs 22,700 crore