DLF to sell 40 per cent Cyber City stake
Promoters of realty giant DLF K P Singh and his family have decided to sell their entire 40% equity in their flagship company in commercial space DLF Cyber City Developers (DCCDL) to Singapore-headquartered private equity firm GIC, formerly known as Government of Singapore Investment Corporation.
The statement issued by the company did not divulge the deal figure. Sources in the company pegged the deal size at around Rs 14,000 crore ($2 billion). At this price, DLF’s rental arm DCCDL could be valued at around Rs 35,000 crore.
The promoters will invest the proceeds from the sale back to the company. This will lead to increase their holding in DLF beyond 75%. At present, they hold 74.9% of the total paid-up capital.
However, statutorily, DLF will be required to issue fresh shares to reduce the promoters’ holding to 75%, which will further enable it to raise around Rs 4,000 crore. According to one estimate, this entire exercise will lead to a fresh capital infusion in DLF of around Rs 16,000 crore.