Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Mergers and Acquisitions »
 M&A deals in pharma sector decline in 2017, amid tough business conditions
 Deals of the day-Mergers and acquisitions Oct 16, 2017,
 Tata Teleservices to merge consumer mobile business with Bharti Airtel
 Deals of the day-Mergers and acquisitions Oct 11, 2017
 Mergers and acquisitions deliver underperformance for insurers
 Deals of the day-Mergers and acquisitions Oct 9, 2017
  Mergers and acquisitions often disappoint
 Mergers and acquisitions often disappoint
 How Mergers and Acquisitions Are Accelerating Innovation in Travel
 Top 5 Mergers and Acquisitions in India in 2017
 Deals of the day-Mergers and acquisitions October 3, 2017

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