DLF tanks 8% on promoters plan to sell 40% stake in rental arm

DLF's audit committee on Wednesday approved arrangement with affiliate of GIC for deal

DLF's scrip on Thursday plunged over 8 per cent following reports that its promoters will enter into an exclusive pact with Singapore's GIC to sell their 40 per cent stake in the company's rental arm, DCCDL, for an estimated Rs 13,000 crore.

The stock tanked 8.11 per cent to end at Rs 141.10 on BSE. Intra-day, it slipped 9.15 per cent to Rs 139.50.

At NSE, shares of the company tumbled 8 per cent to close at Rs 140.90.

The company's market valuation too fell by Rs 2,220.85 crore to Rs 25,172.15 crore.

On the volume front, 30.69 lakh shares of the company were traded on BSE and over two crore shares changed hands at NSE during the day.

"Shares of DLF corrected by 9.2 per cent intraday over the bourses after the company's promoters decided to offload 40 per cent equity in the retail arm DLF Cyber City Developers to Singapore-based private equity firm - GIC," said Achin Goel, Head: Wealth Management & Financial Planning, Bonanza Portfolio.

The audit committee of the company on Wednesday approved entering into an exclusive arrangement with an affiliate of Singapore's GIC for the deal.

Global investors Blackstone and GIC were in the race to acquire the 40 per cent stake of DLF promoters in DCCDL.

"Based on the presentations made by bankers and legal advisors, the audit committee decided that we should go ahead and enter into an exclusivity arrangement with an affiliate with GIC," DLF group Chief Financial Officer (CFO) Ashok Tyagi told PTI.

The country's largest real estate developer, DLF, had announced in October 2015 that its promoters would sell their entire stake in DLF Cyber City Developers (DCCDL), which holds the bulk of the commercial assets of the group.