Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: TDS :: ACCOUNTING STANDARDS
 
 
Mergers and Acquisitions »
 Deals of the day-Mergers and acquisitions May 18, 2017,
 Forced mergers, sacking on cards as RBI gets tough with misfiring big banks
 Why India Inc is on an M&A spree, preferring inorganic growth to investing in fresh projects and capacities
 Banking consolidation 2nd wave: FinMin sees room for 3-4 more PSB mergers
 Ministry of Corporate Affairs (MCA) notifies the provisions of cross-border mergers and acquisitions
  GAVS Tech eyes to double revenue from mergers & acquisitions
 ACC, Ambuja Cements evaluating merger
 News Corp VCCircle Mergers & Acquisitions Summit 2017
 A new merger control philosophy
 IT deserves a strategic role in merger & acquisition integration
 Merger of Orient and IL&FS wind power businesses hits tax hurdle

Market apprehensive of probable DLF-DAL merger
May, 13th 2009

In the wake of promoters' stake sale in DLF, market participants favour such decision as it projects good liquidity inflow into the beleaguered real estate company, which bears good amount of liability. However, they are also apprehensive of a probable merger in the long run, which could hurt shareholders interest.

The founders of DLF on Wednesday sold around 11 per cent of their stake, raising more than $800 million. As per latest reports, DLF is in need of around Rs 4000 crore.

To meet this liquidity, the management was desperately planning to offload its stake to PEs and individual HNIs. On the other hand the company has also put on block its prime business property for sale to generate liquidity, feels Dillip Davada, an independent market analyst based in Mumbai.

Market men feel such a stake sale will finally result in greater cash flow into the market. The proceeds would be used to infuse capital in its privately held property trust DLF Assets Ltd (DAL). It would help DAL to purchase private equity D.E. Shaw's stake in the company.

Said V K Sharma, head - equity research, Anagram Stock Broking, Currently, the stake dilution is good for the companys financial health. It will generate liquidity for the company which wants to complete its big projects. However, in the long run there is a possibility of a merger between DLF and DAL.

On being asked as to why such a merger is not worthwhile from an investor point of view, Sharma states that both the business models of those two companies are different. While DLF sells properties to get revenue, DAL retains assets on lease basis. Once the lease is over, the company may not get another lease right in time, which would result in stopping of revenue inflows.

On similar lines, NSE listed broker Manish Innani concurred, After the stake dilution, a merger is not far fetched reality. It would precipitate in downgrading the company from an investment perspective.

On Wednesday, shares in DLF, which the market values at more than $8 billion, closed at Rs. 233, down 1.33 per cent on NSE wherein SNP CNX Nifty were down by 1.40 per cent.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions