DLF up 2.3%; dilutes 49% in projects

MUMBAI: DLF has diluted 49 per cent equity in seven residential projects to a Merrill Lynch & Co entity for Rs 1,481 crore. The mid-income housing projects, located in Chennai, Bangalore, Kochi and Indore, would get fully developed in about 7-8 years.

The company has also diluted 49 per cent of equity in another middle-income housing project in Panchkula, Haryana, to Brahma Investments, for Rs 194 crore.

“DLF continues to remain focused on keeping its net economic interest in homes business to a ten year development horizon. Accordingly, these two transactions shall help DLF unlock its investments in land resource for the eight projects and also help in increasing rate of return to DLF shareholders. Besides resulting in positive NAV accretion for DLF, the transactions would provide good returns for the PE investor,” TC Goyal, managing director of DLF said on the stake sale.

At 11:06 am, DLF shares were up 2:31 per cent at Rs 958.15 on BSE.