DLF Share Price Surged 3 Per Cent Intraday

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 21^st 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.

DLF Looks for Partners for Stake Sale in Rental Arm

DLF is reported to eye multiple partners to divest 40 per cent stake in its rental arm -DLF Cyber City Developers, to get maximum valuation. At the moment, the company is holding individual bilateral discussions with more than three financial institutions. According to reports, DLF had shortlisted Brookfield Asset Management, Blackstone Group and Singapore wealth fund GIC for doing the needful.

SEBI has relaxed rules and a company can have several firms coming in to initiate competition. DLF will not divest stake to only a single partner. The debt-laden company is looking to shut the transaction before the end of this fiscal year.

The stake sale is anticipated to leave DLF in funds, enabling it to considerably lower its debt which was seen at Rs. 22,120 crore as on June 30. The company had declared plans to dilute stake in the rental arm in October last year. It makes sense for DLF to bring in more partners since it will achieve the aim of getting maximum valuation. They may even divest the 40 per cent stake to two-three players at differential rates. It is also possible that they ask other firms to match the highest bid received.

Meanwhile DLF share price is quoting above 4 per cent at Rs. 145.65. Today’s trading session saw approximately 93,23,423 shares being traded in the counter with a traded volume of 6,245.90 lacs, as per NSE.  The stock closed at Rs. 146.15.

Other than Brookfield, Blackstone and GIC, other firms namely -Qatar Investment Authority and Warburg Pincus are still in the race. As per estimates, the 40 per cent stake sale could yield DLF up to Rs. 14,000 crore. The stake sale is anticipated to be followed by raising more equity shares worth  Rs. 3,000 crore to make up for the funds lost because of taxes, the source said, further adding that DLF will also look at launching a REIT after this exercise. DLFs debt could slip down to Rs. 6,000 crore after this and could be debt-free in next two years. The completion of the transaction will be an important step to create two pure plays — a residential business with zero debt and an independent commercial business in partnership of long term institutional investors.

The Information Memorandum was generated among the investors in April and several bids were received from sovereign funds and global private-equity firms in June. DLF, in its analyst presentation post the announcement of financial results for first quarter of fiscal year 2016-17, had mentioned that it had allowed shortlisted bidders access to virtual data room and vendor diligence reports. The company had added that it anticipates to receive binding, updated bids in the form of marked up shareholder agreements once the shortlisted bidders execute their due diligence.

DLF share price touched its 52 week high value at Rs. 169.60 on 19^th August ’16 whereas the 52 week low value is seen at Rs. 72.35 on 12^th Feb ‘16. The company has a market cap amounting to Rs. 24984.19 (Cr) with a book value of Rs. 153.37.

DLF is identified by Dynamic Levels as the top 500 performing stocks for the June quarter amongst the 1700 stocks listed on the NSE.  DLF is fundamentally strong and is safe for investment, according to Dynamic analysts.

In order to know more about the support and resistance levels of the stock and also its fundamentals and financials, please a pay a visit to DLF share price history.

Anticipated Q1 Number Of DLF Highlights Weak Quarter

It is anticipated that DLF is likely to post one more shaky quarter owing to slowdown in sales. The company might see its net profit rise by 19 percent at Rs 144 crore in April-June quarter from Rs 121 crore in the same quarter of the last financial year. Throughout the quarter, its revenue might be flat at Rs 2240 crore versus Rs 2231 crore on annual basis. Talking about its EBITDA in Q1, it is seen up 5 percent at Rs 870 crore jumping from Rs 828 crore whereas its operating profit margin (OPM) may stand at 38.9 percent as compared to 37.1 percent Y-o-Y. Slowdown in sales is seen over all micro markets except Gurgaon. Pre-sales can also face a down fall 50 percent (Q-o-Q) at 0.24 msf versus 0.5 msf Q-o-Q.  Pre-sales value expected to slip 55 percent (Q-o-Q) at Rs 510 crore versus Rs 1130 core. DLF Phase V super premium products are expected to be the chief contributor to pre-sales. The management is targeting to achieve Rs 3000-3500 crore revenues in FY17.

The anticipated number did not have much effect on the stock and since this morning DLF share price is quoting at a fall of 0.69% at Rs. 158.60. We are yet to see what effect the final result casts on the stock. The stock opened at Rs. 160.20, quite close to its first resistance level. Till now 24,55,927 shares exchanged hands having a traded volume of 3,901.98 lacs.

DLF share price touched its one year high few days back on 19^th August on ’16 at Rs. 169.60 while the 52 week value is recorded at Rs. 72.35 on 12^th Feb ’16. The company has a market cap amounting to Rs. 28489.65 (Cr) having a book value of Rs. 153.37. The lifetime high of the stock is seen at Rs. 1225.00 (14-Jan-08). At the same time the lifetime low is recorded at Rs. 72.35 (12-Feb-16).

For securing detailed information on the stock, kindly refer to DLF share price history.