New Delhi: Realty major DLF today announced the sale of its wind turbine projects in Tamil Nadu and Rajasthan for Rs. 240.9 crore to two separate entities as part of its strategy to exit non-core businesses and reduce debt.
While the company has sold the 34.5 megawatt (MW) wind mill project in Tamil Nadu to Tulip Renewable Powertech for Rs. 188.7 crore, the 33MW wind mill project in Rajasthan has been sold to Violet Green Power for Rs. 52.2 crore.
DLF, the country's largest realty firm, had sold its 150MW wind mill in Gujarat to Bharat Light and Power for Rs. 282.30 crore. Now, the company is left with only Karnataka's wind mill having a capacity of 11MW.
In a filing to the BSE, DLF said: "A definite agreement has been entered between the company's wholly owned subsidiary DLF Home Developers and Tulip Renewable Powertech."
Accordingly, Tamil Nadu's wind mill project of 34.5MW capacity, including related assets and liabilities and relevant long-term loans, has been transferred to Tulip for Rs. 188.7 crore.
Similarly, DLF Home Developers has entered into another agreement with Violet Green Power for sale of Rajasthan wind mill undertaking of 33MW capacity for consideration of Rs. 52.2 crore.
"The transactions are in line with the DLF's objective of divesting its non-core assets," the company said.
The company's share price was down 0.62 per cent to Rs. 233.80 on the BSE in afternoon trade.
The wind power project divestment is the latest in a string of deals entered by DLF in the last eight months.
In August last year, DLF had sold a 17-acre land in Mumbai to Lodha Developers for Rs. 2,727 crore. In December 2012, it announced sale of Aman Resorts back to founder Adrian Zecha for about Rs. 1,650 crore, while in late January this year, it sold the Gujarat wind mill project for Rs. 282 crore. DLF has been selling its non-core businesses since the last couple of years to focus on core real estate business and cut its huge debt, which stood at Rs. 21,350 crore at the end of the December quarter of 2012-13 fiscal.
The company is targeting to pare its net debt by half over the next three years to Rs. 10,000-11,000 crore with the help of fresh issue of equity shares, sale of non-core assets and improved cash flows.
Yesterday, DLF's shareholders approved the sale of fresh equity shares to meet market regulator Sebi's norms of 25 per cent minimum public shareholding in a listed company. Earlier, sources had said that DLF is likely to offer over eight crore fresh equity shares, worth over Rs. 2,000 crore at current market price, for dilution of promoters' stake to below 75 per cent from the current 78.58 per cent.
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