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DLF eyes better cash flow by biz integration

17 Dec 2009 Evaluate

Realty major DLF has approved integration of DLF Assets with DLF Cyber City Developers, a move that will enhance its cash flow through rental income. The DLF board gave an in-principle approval on Tuesday to integrate, including by way of merger/amalgamation of DLF Cyber City Developers with Caraf Builders & Constructions (Caraf), the holding company of DLF Assets (DAL), set up by group promoter KP Singh.

 

The special committee of independent directors has given in-principle approval for the integration of certain rental businesses of the company and certain similar businesses held in promoter entities with a view to eliminate conflicts of interest, achieve management integration and certain other strategic objectives.

 

The valuation ratio accepts the relative valuation of Cyber City and Caraf in the ratio of 60:40. Consequently, the company would have an economic interest in the integrated entity of 60 per cent with the residual 40 per cent being held by the Caraf shareholders.

 

The DLF promoters had invested in DAL through Caraf and DAL was set up to buy commercial properties of DLF. Consolidation would help the group's rental assets under DLF to further enhance the stable rental income and cash flows of the company. The integration will be subject to necessary regulatory approvals.

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DLF Share Price

609.05 12.10 (2.03%)
06-May-2026 16:59 View Price Chart
Peers
Company Name CMP
Lodha Developers 948.50
Dilip Buildcon 479.70
DLF 609.05
Oberoi Realty 1672.50
Ahluwalia Contract(I 853.00
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