DLF gets some good screen time

DLF is doing pretty well today morning. Opening at Rs.113, the stock went up further to Rs.114, where it is currently ruling, 3% higher than yesterday’s closing.

The company is finally managing to sell, after a long time, at least one of its non core assets – its cinema business. DLF has entered into definitive agreements to sell its cinema exhibition business operated under the brand name of "DT Cinemas", to PVR Limited, on a slump sale basis for an aggregate consideration of Rs. 500 crore.

DT Cinemas operates 29 screens across eight properties in NCR and Chandigarh with plans to add 10 screens in the NCR. This acquisition will increase PVR Cinemas’ screen-count to 506 screens across 115 multiplexes in 44 cities.

This is a good deal for the company. Over the past it has sold off its wind energy business, divested stake in Aman Resorts and also sold off its IT SEZ in Pune. But between September 2014 to March 2015, it’s net debt instead of coming down, increased by Rs.628 crore. It currently stands at Rs.20,965 crore.