Realty major DLF Ltd on Thursday (August 17) said Chairman Emeritus K.P. Singh, who is one of the promoters, has sold his entire stake in the firm to set up a charitable foundation and will use this money as corpus for the same.

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In an exclusive interview with CNBC-TV18, Ashok Kumar Tyagi, Managing Director of DLF, said other promoters are not planning to sell stake in DLF, "But yes, this was a one-off predominantly driven by the Chairman Emeritus' vision for setting up a charitable foundation."

Tyagi clarified that Chairman Rajiv Singh, who owns the bulk of the promoter stake, has not sold any share in the company. The promoters held a 74.95 percent stake in the company at the end of the June quarter.

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Further, he said the company had an opening inventory of about Rs 5,000 crore as of June 30, 2023, and DLF has a launch pipeline of Rs 20,000 crore during the year. So, the company has a total availability of almost Rs 25,000 crore of products for sale.

"Our guidance has been Rs 13,000 crore for a year, but (if) the Q3 and Q4 launches … do meet a more enthusiastic response, then these numbers could have an upside risk, but our official guidance stays at Rs 13,000 crore which is what we have told the market also," Tyagi said.

Talking about the Mumbai projects, he said DLF had one project with Shapoorji Pallonji Group and a local developer called Hubtown, which never took off.

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Elaborating on the Andheri project, Tyagi said it has the potential of almost 2.5-3 million square feet of saleable area in the LoIs that exist with a potential for an upside later. DLF believes that eventually this could amount to Rs 6,000-7,000 crore of sales potential in the current phase.

"The first launch of this project should hopefully happen, I would say, within the next nine months from today, and it should be about a million square feet of saleable area, which will translate to whatever RERA carpet translates to, and that should be hitting the market hopefully before March, latest before June," he added.

Back in the first week of August, K.P. Singh sold his entire remaining stake in DLF for around Rs 731 crore. According to bulk deal data on BSE, Kushal Pal Singh, one of the promoters, sold 1,44,95,360 shares on the stock exchange at Rs 504.21 each, totalling Rs 731 crore.

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In June 2020, Singh retired as the company's chairman after nearly six decades in business. Under his leadership, DLF expanded beyond Gurgaon, building apartments, shopping malls, and hotels. In 2007, he oversaw DLF's much-anticipated initial public offering, which raised Rs 9,188 crore through the sale of 17.5 crore shares.

Shares of DLF Ltd ended at Rs 477.50, down by Rs 0.40 or 0.084 percent on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Aug 17, 2023 6:21 PM IST