DLF’s promoters have concluded the sale of 33.34% stake in its rental arm to sovereign wealth fund GIC for nearly Rs 9,000 crore. The company will use the funds to reduce net debt, which has surged to nearly Rs 27,000 crore.
In late August, the promoters had sold the entire 40% stake in rental arm DLF Cyber City Developers (DCCDL) for Rs 11,900 crore and proposed to invest proceeds into DLF. This deal included sale of 33.34% stake in DCCDL to GIC for Rs 8,900 crore and buyback of remaining shares worth Rs 3,000 crore by DCCDL.
DLF is one of India's biggest property developers. The company’s primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals.