DLF's Rs 1,100 cr buy back offer to start on Oct 15

Country's largest developer DLF today said its Rs 1,100-crore buy back offer will start on October 15.

The buyback will open on October 15, this year and would close on July 9, 2009, that is 12 months from the date the board of directors approve the offer, the company said in a filing to the Bombay Stock Exchange today.

However, the board in its absolute discretion may decide to close the buy back at an earlier date, if the minimum offer shares have been purchased under the buy back, even if the maximum offer size has not been reached or the maximum offer shares have not been bought back, the company added.

In July, the company had announced its plan to buy back shares from existing shareholders at a price not exceeding Rs 600 a share.

The company is planning to buy a maximum of 22 million equity shares, or 11 per cent, of the 202 million shares held by the public. Post-buy back, the shareholding of the promoters would increase from 88.16 per cent to 89.32 per cent.

JM Financial and Merrill Lynch are the merchant bankers for the plan. "It is right time for the company to buy shares from shareholders as the stock is trading at low levels. The buy back was announced to bolster investors' confidence," said an analyst from a Mumbai-based brokerage.

Shares of the company closed at Rs 301.65, down 10.33 per cent on the Bombay Stock Exchange.