Singapore's sovereign wealth fund GIC has approached fair trade regulator CCI seeking approval for its deal to acquire stake in DLF rental arm for Rs 8,900 crore and form joint venture with the realty firm.
According to sources, GIC has approached the Competition Commission of India (CCI) to get approval for this deal.
The deal is expected to be approved by next month, they added.
On its part, DLF last week got shareholders approval for promoters' decision to sell their entire 40 per cent stake in the rental arm for Rs 11,900 crore.
Post this deal, DLF will have 66.66 per cent stake in DCCDL and GIC 33.34 per cent in the joint venture.
"Institutional investors have overwhelmingly supported this strategic transaction, which will be a game-changer for the company. This will not only remove conflict of interest and reduce significantly the company's overall debt, but create free cash flows," DLF's Senior Executive Director (Finance) Saurabh Chawla told PTI.
"We intend to create a pure play in our commercial and residential businesses," he said.
While the residential business will be driven 100 per cent by DLF, the commercial segment will be run in a JV with GIC, Chawla said.
DLF promoters -- K P Singh and family -- will infuse the net proceeds into DLF for debt repayment.
While promoters are expected to invest about Rs 10,500 crore into the company, DLF expects to raise another Rs 3,000 crore from institutional investors as the company will have to hit the capital market to maintain promoters shareholding at 75 per cent post their infusion of funds.
DLF would use this Rs 13,500 crore to repay its debt that stood at nearly Rs 26,000 crore at the end of the June quarter.
DLF Cyber City Developers Ltd has rent yielding assets of 26.9 million square feet with annual rental income of over Rs 2,500 crore. It has an under-development pipeline of 2.5 million sq ft with further development potential of 19 million sq ft within the portfolio.