DLF remains in the limelight

DLF, in the morning trades, rose by over 3% to Rs.142.90 and is now at Rs.141 with some 5.5 lakh shares being traded.

The stock was awaiting the “rental” news since yesterday and the news is good. At the Board meeting held yesterday,  promoter, KP Singh’s family is now allowed to divest 40% stake in rental arm – DLF Cyber City Developers to institutional investors to reduce conflict of interest with compulsorily convertible preference shares (CCPS) holders . This stake divestment is estimated to bring in Rs.14,000 crore to the promoters kitty.  This rental company brings in an annual income of around Rs.2000 crore.

The promoters intend to use the money raised to invest back into DLF and their stake, which now stands at 75% might go up.