DLF bags 112 acre DCM land in Delhi

The realty major has begun to make good use of the proceeds from its IPO.
DLF has just bagged close to 112 acres of land in west Delhi for about Rs 1,750 crore from DCM Shriram, beating archrival Unitech. DLF outbid Unitech by Rs 150 crore, part of the cost will be funded by IPO proceeds. The only rider could be the Supreme Court order that may restrict its construction plans on this property in Delhi

Analysts say that DLF might have overpaid, the Supreme Court says that only one third of the land can be developed and the rest has to be green, which means DLF can only build on about 38 acres of the 112 acres it had bought.

There is hardly any stretch of land of this size in central Delhi and DLF having exhausted its options in Gurgaon is looking to establish its space in central Delhi. Having paid so much of money, the company will look to multiply its investments through property development.

The DLF stock has risen nearly seven per cent in last two trading sessions, making it the eighth most valuable company in the country. Analysts say that with interest rates peaking out and rising middle class incomes, DLF is headed for good times ahead.

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