India’s largest real estate developer, DLF ltd, on Wednesday said that some of the promoter members sold 168 million shares of the company to the institutional players for Rs3860 crore in an open market transaction.
The shares were sold at the price of around Rs 230, a 2.6 per cent discount to Tuesday's closing price. This leaves the promoter group with 78.6 per cent stake in the billionaire K P Singh-promoted DLF.
The promoters propose to use the proceeds to infuse capital directly on indirectly into DLF Assets (DAL), the promoter group company that buys commercial properties from DLF to earn lease rentals.
"The money infused into DAL would be used by it to pay to DLF towards its contractual obligations," said the company in a statement to Bombay Stock Exchange (BSE).
"The promoters may also use part of the net proceeds towards the purchase of D E Shaw's interest in DAL," it said.
D E Shaw is a US based hedge fund having stake in DAL.
The transaction has increased the free float of the company to 21.3 per cent from 11.4 per cent earlier. J P Morgan and Deutsche Bank executed the transaction for the promoter group.
The stock of the company was up by 2.73 per cent to Rs247.70 a share on BSE post the announcement at 1.04 pm.