DLF jumped 8.61% to Rs 145 at 11:15 IST on BSE after reports suggested that promoters, KP Singh and his family have decided to wipe out company's debt in a two-step transaction.
Meanwhile, the S&P BSE Sensex was up 136.85 points or 0.52% at 26,661.40.
High volumes were witnessed on the counter. On BSE, so far 17.17 lakh shares were traded in the counter as against average daily volume of 11.20 lakh shares in the past one quarter. The stock hit a high of Rs 146.50 in intraday trade, which was also a 52-week high for the stock. The stock hit a low of Rs 139.10 so far during the day. The stock had hit record low of Rs 72.50 on 12 February 2016. The stock had outperformed the market over the past one month till 28 June 2016, gaining 3.49% compared with Sensex's 0.48% fall. The scrip had also outperformed the market in past one quarter, gaining 25.29% as against Sensex's 6.24% gains.
The large-cap company has equity capital of Rs 356.75 crore. Face value per share is Rs 2.
As per reports, KP Singh and his family will pump Rs 10000 crore into DLF by purchasing shares in a preferential issue by DLF with funds raised from the sale of their stake in the company's rental unit.
The Singh family plans to sell its 40% stake in DLF Cyber City Developers (DCCDL) for Rs 12000-13000 crore and will use the money to retire the parent company's debt. Separately, DLF will raise about Rs 3000 crore from institutional investors to ensure that the stake of the promoters doesn't breach the 75% threshold after the purchase of the preferential shares.
DCCDL is 60% owned by DLF. DLF had a consolidated gross debt of Rs 25623 crore as of March 2016. Net debt, after adjusting cash in hand of Rs 3421 crore, was Rs 22202 crore and this included Rs 12325 crore of DCCDL's dues, report added. The residual debt on DLF's books would be about Rs 10000 crore. Singh and family are in advance discussions with sovereign and pension funds and private equity firms to sell 40% ownership in DCCDL, DLF arm that develops and leases commercial property.
GIC of Singapore, Abu Dhabi Investment Authority, Qatar Investment Authority, Canada Pension Plan Investment Board, Blackstone Group, Temasek Holdings, Warburg Pincus and Brookfield Asset Management are among the sovereign and pension funds and PE firms that have submitted bids for the stake in DCCDL. Once promoters enter a binding agreement with the successful bidder, DLF will start the process of raising funds through the fresh issue of equity shares to the promoters and institutional investors.
DLF's consolidated net profit fell 22.9% to Rs 132.39 crore on 19.5% growth in net sales to Rs 2335.56 crore in Q4 March 2016 over Q4 March 2015.
DLF's primary business is development of residential, commercial and retail properties.
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