DLF soars 7% as promoters plan to wipe out Rs 10,000-crore debt

NEW DELHI: Shares of DLF jumped over 7 per cent in Wednesday’s trade amid reports suggesting that promoters KP Singh and family have decided to make the real estate company debt free by purchasing shares through a Rs 10,000 crore preferential issue.

According to a report by ET, DLF’s promoters would sell 40 per cent of their stake in the company's rental unit, DLF Cyber City Developers (DCCDL), to fund the largest domestic real estate company.

The stake in rental business arm would bring in Rs 12,000-13,000 crore, ET reported, which will be used to retire the parent company's debt. DLF will also raise about Rs 3,000 crore from institutional investors to ensure that the stake of the promoters does not climb above 75 per cent and, thus, breach the minimum public holding norms of 25 per cent, two people familiar with the development said.

Following the report, the stock surged 7.67 per cent to hit a 52-week high of Rs 143.75 on BSE. At 9.18 am, the counter had buy orders of 1,41,897 shares, compared with sell orders of about 47,000 shares.