DLF sheds 3% after it plans to sell 40% stake in rental arm to GIC

Shares of DLF shed nearly 3% after the real estate developer decided to sell 40% of the stake in the company’s rental arm DCCDL for an estimated Rs 12,500 crore-Rs 13,000 crore to an affiliate of Singapore-based private equity firm GIC.

Reacting to the development, the stock of the company slipped as much as 2.7% to Rs 149 on the BSE. 

On the volume front, nearly 6 lakh shares exchanged hands on the counter on BSE against its two-week average of over 10 lakh shares. 

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% stake of DLF promoters in DCCDL.

“Based on the suggestions made by the bankers and legal advisors, it was finally decided that we should go ahead and get into an exclusivity agreement with an affiliate of GIC. It means that now we would only be dealing with them within a stipulated time, during which we would both try and close the definitive documentation,” Ashok Tyagi, DLF’s Chief Financial Officer, told reporters. CLICK HERE FOR FULL REPORT

Sources said the DLF audit committee zeroed in on GIC as it offered a better deal than Blackstone.