DLF, a prominent player in the real estate market, announced on Wednesday its intention to invest as much as Rs 4,100 crore. This substantial investment includes Rs 200 crore earmarked for establishing a new asset management company.
The company disclosed in a filing to the BSE that a significant portion, amounting to Rs 1,550 crore, would go toward DLF Limitless Developers Pvt Ltd. Additionally, investments of Rs 200 crore each are planned for the proposed asset management company and a trustee company.
Pending approval from the relevant Registrar of Companies, these new firms will be known as DLF Pramerica Asset Managers Pvt Ltd and DLF Pramerica Trustees Pvt Ltd, respectively.
The remainder of the investments is earmarked for other entities, including Shivajimarg Properties Ltd (Rs 750 crore), DLF Southern Homes Pvt Ltd (Rs 750 crore), DLF New Gurgaon Homes Developers Pvt Ltd (Rs 600 crore), Jai Luxmi Real Estate Pvt Ltd (Rs 10 crore), Solid Buildcon Pvt Ltd (Rs 10 crore), Paliwal Real Estate Pvt Ltd (Rs 10 crore), and Triumph Electronics Pvt Ltd (Rs 20 crore).
In addition to equity investments, DLF will extend loans up to Rs 8,800 crore to these ten companies and provide guarantees worth the same amount to assure financial stability.
Furthermore, DLF plans to contribute up to Rs 250 crore annually to charitable causes and other funds that do not directly relate to the company’s core business or the welfare of its employees.
To validate these proposals, the firm will seek approval from its shareholders via a postal ballot. The completed postal ballot forms must be submitted to the scrutinizer by March 24, with the results to be revealed on March 31.
At the end of the trading session, DLF’s shares were valued at Rs 681.35, marking a 0.47% increase on the BSE.