DLF Home Developers Acquires Remaining Stake in DLF Urban for ₹496.73 Crore

DLF Limited, on March 25, 2025, announced that its wholly-owned subsidiary, DLF Home Developers Ltd (DHDL), has acquired the remaining 49.997% stake in DLF Urban Private Limited (DUPL) from Reco Greens Pte Ltd for ₹496.73 crore. The acquisition was formalised through a Securities Purchase Agreement executed on the same day.

As of 12:02 PM on March 26, 2025, DLF share price was trading at ₹690.90, down ₹4.30 (0.62%) for the day, with a 7.55% rise over the past month and a 25.23% decline over the past six months.

Deal Structure and Valuation

The transaction included the purchase of 46,39,607 equity shares and 3,20,09,726 Series D compulsorily convertible debentures (CCDs). The valuation for the deal was supported by reports from Price Waterhouse & Co LLP, Jain Jindal & Co, and Samarth Valuation Advisory LLP. Payment was made entirely in cash.

Following the acquisition, DHDL’s shareholding in DUPL increased from 50.003% to 100%, making DUPL a wholly-owned subsidiary of both DHDL and DLF Limited. The acquisition is classified as a related party transaction but was conducted at arm’s length based on independent valuation reports.

About DUPL

DLF Urban Private Limited was incorporated on April 13, 2015. It operates in the real estate sector, focusing on the construction, development, and sale of residential properties. The company is known for developing the One Midtown residential project in Delhi.

As per audited financials for the year ending March 31, 2024, DUPL reported a turnover of ₹4.07 crore, a net loss of ₹15.61 crore, and a net worth of ₹17.65 crore. DUPL has no international presence outside India.

Capital Plans

DLF recently announced plans to invest ₹20,000 crore over the next few years to complete ongoing residential projects. These projects are expected to generate a total surplus cash flow of approximately ₹43,000 crore. As of the December 2024 quarter, DLF reported ₹9,000 crore in cash reserves and ₹30,000 crore in customer receivables. An additional ₹24,000 crore is expected from the unsold inventory.

In the rental space, DLF plans to invest another ₹20,000 crore over the next five years in commercial projects.

Conclusion

The acquisition brings DLF Urban fully under the DLF Group, completing its stake consolidation in the subsidiary.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.