DLF making waves

After becoming the first realty company to cross Rs.1 trillion market capitalisation, DLF is in news for all the big talks.

Reports suggest that it has struck the largest land deal in India between two parties by buying 112 acres of land from DCM Shriram in West Delhi for  Rs.1750 crore outbidding Unitech’s Rs.1500 crore deal in Noida.

DLF may develop the land using the IPO proceeds for office, retail, residential and maybe even an IT Park. However, DLF can develop only 38 aces of land as Supreme Court ruling says that three-fourth of the land should be green.

Apart from its rising stock price, DLF is also earning Rs.1.3 crore by parking 80% of its IPO proceeds in liquid mutual funds of Reliance, ICICI Prudential and Deutsche Bank among others.

Through this, the company can earn 7.5% return till the money is deployed for their business plans.

In another development, CNBC TV18 reports that DLF may be partnering with Giorgio Armani to enter the luxury retail segment by opening up a store in DLF’s Emporio Mall in Delhi.

Armani earlier had talks with Reliance Retail and Birla’s Madura Garments but didn’t materialise. DLF is also said to be in talks with USA’s Ralph Lauren for a similar tie-up.

But since luxury retail is just 1% of India’s retail market, the expansion may be limited to only metro cities.