NEW DELHI: DLF promoters KP Singh family will sell their 40% stake in the company’s rental arm DLF Cyber City Developers Ltd (DCCDL) for an estimated Rs 14,000 crore to institutional investors.The promoters will re-invest a significant part of the amount realised from the sale in DLF Ltd.
The decision was taken by the DLF’s board of directors in its meeting held here based on the recommendation by the audit committee, which was set up last year to suggest ways to drive the growth of rental business. In late 2009, DLF had announced merger of its subsidiary DCCDL with promoters’ firm Caraf Builders and Constructions.
DCCDL had then issued CCPS (compulsorily convertible preference shares) worth Rs 1,597 crore to promoters. Postconversion, promoters would have 40% stake in DCCDL, which holds bulk of the DLF’s commercial assets.