DLF slips in red after rising over 3% as it seals JV deal with GIC

Realty major DLF wiped off all its morning gains to slip in red on Monday after the company on Sunday said it has entered into a joint venture (JV) with GIC to build rental assets in India. READ FULL REPORT HERE 

The promoters sold 33.34% stake in the rental arm to the Singapore sovereign wealth fund for Rs 8,900 crore.

Reacting to the development, the stock surged as much as 3% to Rs 192 in the early trade. The stock pared all its gains to hit its intraday low of Rs 180, down 2%.   

In the biggest deal in the Indian real estate sector, DLF promoters on Friday decided to sell their entire 40 per cent stake in a rental arm DLF Cyber City Developers (DCCDL) for Rs 11,900 crore that included the stake sale to GIC as well as buyback of shares by DCCDL.

With this deal, DLF stake in the DCCDL will increase to 66.66 per cent from 60 per cent while GIC will have 33.34 per cent stake.

In a joint statement, DLF and GIC announced that they have entered into a strategic partnership to develop a rental assets portfolio under the consolidated portfolio of the DCCDL.