DLF jumps ahead of audit committee meet to review sale transaction

DLF jumped 6.05% to Rs 185.90 at 12:00 IST on BSE after the company said that its audit committee on 25 August 2017, will consider and review the status of the proposed sale of CCPS held by CCPS holders to a GIC affiliate.

The announcement was made after market hours yesterday, 22 August 2017.

Meanwhile, the BSE Sensex was up 178.96 points, or 0.61%, to 31,481.39.

On the BSE, 11.85 lakh shares were traded in the counter so far, compared with average daily volumes of 11.07 lakh shares in the past one quarter. The stock had hit a high of Rs 189 and a low of Rs 179.20 so far during the day. The stock had hit a 52-week high of Rs 215.80 on 17 May 2017. The stock had hit a 52-week low of Rs 101.05 on 27 December 2016.

The stock had underperformed the market over the past one month till 22 August 2017, falling 10.77% compared with 2.3% decline in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 14.57% as against Sensex's 2.36% rise. The scrip had also underperformed the market in past one year, gaining 6.53% as against Sensex's 11.81% rise.

The large-cap realty major has equity capital of Rs 356.81 crore. Face value per share is Rs 2.

DLF said that a meeting of the audit committee is scheduled to be held on 25 August 2017 to consider and review the status of the proposed sale of cumulative, compulsory, convertible preference shares (CCPS) held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board. The board will in its meeting scheduled to be held later on 25 August 2017, consider the said recommendations and take appropriate decisions, as required.

On 1 March 2017, the audit committee after due deliberations and with due consultations with the CCPS holders, approved entry into the next phase of the process to negotiate definitive transaction documents and execution of an exclusivity agreement with an affiliate of GIC Singapore.

The board of directors had authorized the audit committee to determine and finalise the terms of CCPS sale transaction including selection of unrelated third party institutional investors in consultation with the CCPS holders, as appropriate, to negotiate and finalize the transaction documents and to oversee and facilitate the CCPS sale transaction.

On 8 October 2015, board had approved the proposal of three promoter group companies or CCPS holders to sell 15.96 crore CCPS of DLF Cyber City Developers to unrelated third party institution investors subject to certain conditions.

DLF's consolidated net profit fell 58.4% to Rs 109.01 crore on 9.7% rise in net sales to Rs 2047.70 crore in Q1 June 2017 over Q1 June 2016.

DLF's primary business is development of residential, commercial and retail properties.

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