DLF share price surged 3 per cent in Thursday’s trading session before the board meeting to review the progress of the stake sale in Cyber City Developers.
In the filing to the regulatory bodies the real estate developer said the Audit Committee in a meeting, on 21st October, will review the progress of the sale of cumulative compulsorily convertible preference shares (CCPS) of DLF Cyber City Developers – DCCDL.
The board of directors, in the month of October 2015, had approved the proposal for promoter group companies - Rajdhani Investments & Agencies, Buland Consultants & Investments along with Sidhant Housing & Development (CCPS holders) - to sell around 15.96 crores cumulative compulsorily convertible preference shares of DLF Cyber City Developers to an unrelated third party institutional investor/investors.
After this conversion of these preference shares into equity shares, it would result in 40 per cent equity shareholding in DLF Cyber City Developers. The balance 60 per cent stake is held by the DLF. The board had authorized the audit committee to finalize strategic terms of CCPS sale transaction including selection of third party institutional investor/investors in consultation with CCPS holders. In the Financial Year 2016, DLF Cyber City Developers reported a 4 per cent de-growth in profit at Rs 921 crores and a 5 per cent growth in revenue at Rs 3,643 crores compared with Financial Year 2015.
At the end of the first quarter of FY17, it had net debt of Rs 7,728.96 crores on its books while DLF's consolidation debt was Rs 22,120 crores. DLF has been selling assets to reduce its huge debt. Recently it concluded sale of cinema exhibition business (operated under the brand name of DT Cinemas) to PVR.
On the market front DLF share price is trading at Rs 153.70 apiece on NSE up by 2.19 per cent. A total of 46,35,105 shares of the Company have been traded on the counter of NSE.
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