The Hindu Business Line : DLF board gives nod for buyback; date set next week

The company had announced in July that it would buy back up to 2.2 crore shares at a maximum price of Rs 600 an equity share. The Delhi-based realtor — headed by billionaire Mr K.P. Singh — had also planned to allocate up to Rs 1,100 crore for the purpose.

Buyback date

Sources said that the company would start the buyback sometime next week, although the exact date is not yet known.

DLF board of directors on Tuesday approved the public announcement for the buyback of equity shares. The company would buy the shares through open market purchases via stock exchange route.

DLF had debuted on the Bombay Stock Exchange in July 2007 at Rs 582 a share, almost 11 per cent higher than the issue price of Rs 525 a share. However, the stock value has fallen since the start of 2008. On the BSE on Tuesday, DLF shares closed at Rs 352.40, while the previous close was Rs 350.60.

Increasing shareholder value

Commenting on the reasons behind the buyback decision, Mr Rajiv Singh, Vice-Chairman, DLF Ltd, had said earlier, “The company aim has always been to maximise shareholder value and we see the share-buyback decision as a highly attractive opportunity for our shareholders. This decision would be value accretive for the shareholders. While we respect the market, we believe that our current share prices do not reflect the intrinsic strength and future growth potential of DLF.”

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