DLF Sells Its Wind Power Assets for Rs 240 Crore
Vinaya Patil / 05 Apr 2013
The company’s sale of assets doesn't seem to be fetching it the speculated amount and this may reflect badly on its debt target for the fiscal, while the current news might provide a minor boost to the scrip.
The company’s sale of assets doesn’t seem to be fetching it the speculated amount and this may reflect badly on its debt target for the fiscal, while the current news might provide a minor boost to the scrip
India’s largest Realty player DLF has once again made news for selling its non-core assets. The company has reported to the exchanges that it has sold 2 of its wind power assets for Rs 240 crore.
We had previously carried a report regarding DLF selling its non-core assets to bring down its debt levels. In the past, it sold one land parcel in Mumbai to Lodha Builders for Rs 2727 crore, its Aman Resorts assets at Rs 1650 crore and 150 MW wind power facility for Rs 282 – Rs 285 crore.
In line with its strategy, the company has now sold 2 of its wind power facilities situated in Tamil Nadu (34.50 MW) and Rajasthan (33 MW) for Rs 240 crore. While the 34.50 MW Tamil Nadu based facility is being sold to Tulip Renewable Powertech, the 33 MW facility in Rajasthan is being sold to Violet Green Power. After this, the company will only be left with one 11 MW capacity in Karnataka.
We believe that the amount of the asset sale has been much lower than the company expectations. In December 2012, DLF had expected to raise around Rs 800 – Rs 900 crore from the total 227 MW that it owned. However, the sale of 216 MW has only fetched Rs 522 crore to the company. It seems quite difficult for DLF to raise the remaining Rs 300 crore from the left-over 11 MW. We are therefore of the opinion that the company may miss out on its target of bringing down its debt to Rs 18,000 crore in the next quarter from the current levels of Rs 21,350 crore. Further, even if the company manages to bring it to the targeted levels, it is still on the higher side.
Apart from the above plans, the realtor is also eyeing a 20% increase in the rental of leases office and retail space to garner Rs 3,000 crore by the end of 2015, from Rs 2,000 crore currently. Again, it is a long-term plan and it would hence be difficult to comment on the same. The recent news surrounding DLF may provide a short-term impetus to the scrip. The long-term prospects do not look too bright though.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.