DLF buyback unlikely anytime soon

NEW DELHI: DLF Ltd, India’s biggest realtor, is expected to go slow on its share buyback plans as it still is awaiting approval from Securities and Exchange Board of India (Sebi).

The roadblock could take 2-6 months to clear, sources said.

Ramesh Sanka, chief financial officer, DLF, said he cannot comment on when the
clearance would come.

“It depends on Sebi completely. As per the law you have to buyback the shares one year after the clearance,” Sanka told DNA Money.

On July 10, the New Delhi-based developer at its board meeting announced that it will buyback 2.2 crores shares at a price not exceeding Rs 600, and a total consideration amount not exceeding Rs 1,100 crores. This would up promoters’ stake by 1.4% to a maximum 89.3%.

Deutsche Bank analyst Abhay Shanbhag said in a note on Friday that it could take at least another 6 weeks to get the approvals and the buyback to commence.
Gaurav Pathak of ICICI Securities agrees. “The clearance will take its own time,” said
Pathak, who has a “buy” call on the share.