SC refuses to stay DLF plan to sell stake in rental assets

The order came on a fresh plea by market regulator SEBI to obtain a stay on transfer of shares by DLF’s subsidiaries to an overseas entity.

The Supreme Court refused to stay DLF’s plans to raise around Rs. 12,000 crore by selling stakes in its rental properties.

The order came on a fresh plea by market regulator SEBI to obtain a stay on transfer of shares by DLF’s subsidiaries to an overseas entity. 

While a bench headed by Justice J Chelameswar declined immediate relief to SEBI, it did not dismiss its fresh plea and posted it along with its main appeal, pending before the apex court.

In October, DLF had said that its Board had approved plans to sell 40% stake in the company’s rental business (DLF Cyber City Developers) to institutional investors to reduce its debt.

DLF promoters would re-invest a significant part of the amount realised from the proposed sale in the company, which in turn would utilise this fund to trim its debt.

“Post the completion of the proposed transaction, DLF to continue to hold 60 per cent equity interest in DCCDL on a fully diluted basis,” according to the latest DLF presentation.

DLF has appointed JP Morgan and Morgan Stanley as merchant bankers for proposed sale. 

The company has a rental portfolio of 30 million sq ft of area.