DLF gains on reports of kicking off divestment in rental arm

DLF rose 1.86% to Rs 120.65 at 15:18 IST on BSE on reports the company initiated the process to sell promoters' 40% stake in the rental arm.

Meanwhile, the S&P BSE Sensex was up 366.01 points or 1.48% at 25,039.85.

On BSE, so far 14.28 lakh shares were traded in the counter as against average daily volume of 14.97 lakh shares in the past two weeks. The stock hit a high of Rs 122.40 and a low of Rs 119.30 so far during the day. The stock had hit a 52-week high of Rs 162 on 10 April 2015. The stock had hit a 52-week low of Rs 72.50 on 12 February 2016.

According to reports, DLF has sought expressions of interest from several top global investors to sell a 40% stake in its rental assets arm as it seeks to pare debt. The rental assets arm holds about 20 million square feet of leased-out office space and is valued at about Rs 12,000-14,000 crore.

The transaction reportedly involves DLF promoter companies Rajdhani Investments and Agencies, Buland Consultants and Investments and Sidhant Housing and Development Company selling 40% in DLF CyberCity Developers to institutional investors. DLF will continue to hold the remaining stake in DLF CyberCity.

Reports aded that DLF's bankers have circulated the information memorandum to 18-20 global institutional investors that are keen to purchase this stake.

DLF's consolidated net profit rose 24.4% to Rs 163.95 crore on 43.3% rise in total income to Rs 2980.73 crore in Q3 December 2015 over Q3 December 2014.

DLF is one of the biggest real estate development companies in India. DLF is primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties.

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