DLF up 4% on deal completion

Shares of realty major DLF are up 3.62% at Rs. 142.90 per share, when the broader BSE Sensex is up a percentage point at 20,080. Company has completed slump sale of its subsidiary DLF Home Developers Ltd.’s 33MW wind turbines at Rajasthan, for which it has received a consideration of Rs. 67.44 crore.

This deal was announced in April this year and company has now received all the regulatory green signals. The deal completion is just a drop in the ocean. DLF shares have lost 40% since April when price was ruling close to Rs. 250 levels.

DLF, which is looking to divest non-core assets to tame its over Rs. 20,000 crore debt, is also looking to sell its super-premium Aman Resort for over Rs. 1,500 crore. In July this year, it exited insurance business by selling 74% stake in DLF Pramerica to Dewan Housing for an undisclosed consideration. However, outlook on the stock remain cautious due to company’s inability to par the mounting debt quickly and improve cash flows in a slowing economy affecting the core real estate sales.