New Delhi, Jul 10 (UNI) DLF Ltd, the country's largest realty firm, today said it will buyback 2.2 crore equity shares through the open market purchases via stock exchanges route at a price of Rs 600 per equity share.
The Board of Directors has approved the buyback of its equity shares listed on BSE and NSE, subject to the receipt of necessary regulatory approvals from SEBI and other concerned authorities.
The city-based firm said in a statement that it would buy a maximum of 2.2 crore equity shares which will not reduce the minimum public shareholding below 10 per cent, at a price not exceeding Rs 600 per equity share.
''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,'' company Vice Chairman Rajiv Singh said.
The company will allocate up to Rs 1,100 crore for this purpose, and will finance the same through its internal resources, the statement added.
The maximum price fixed for the buyback is at a premium of 33.24 per cent over the last average closing price of the company's equity shares on BSE and NSE as of yesterday.
Mr Singh said, ''Presently, we would like to concentrate our resources towards effective execution of ongoing projects in the best interest of the company and our shareholders.'' However, if extraordinary opportunities arise, he said, the company has sufficient financial resources to take advantage of such situations.
DLF Ltd has appointed JM Financial Consultants Private Ltd and DSP Merrill Lynch Ltd as the merchant bankers for the buyback.
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