DLF's ₹1,241 Crore Land Deal Boosts Stock to Record High

26 Mar 2024 , 03:16 PM

Shares of DLF surged over 3% to reach a new 52-week high of ₹891.6 per share on February 21 following an announcement by its wholly-owned subsidiary, DLF Home Developers. The subsidiary entered into a private treaty with Axis Trustee Services and IREO Private to acquire a land parcel in Gurugram for ₹1,241 Crore.

This realty major’s stock has seen a remarkable increase of over 22% since the beginning of the year, outperforming the benchmark Sensex, which rose by only 1% during the same period.

Under the provisions of the SARFAESI Act, DLF’s arm will acquire land in Gurugram, Haryana, with a total development potential of 7.5 million square feet, based on all eligible floor area ratio (FAR).

The registration and transfer of the first tranche, consisting of 19.3 acres of land parcels, have been completed for ₹858 Crore. The remaining land parcels will be acquired by DLF Home Developers, subject to necessary approvals or permissions.

In an exchange filing, DLF highlighted the robust demand across its projects in Gurugram, which were completely sold out within a record time frame. As a result, the company’s new sales bookings for the nine-month period reached ₹13,316 Crore, comfortably surpassing its full-year guidance.