Founders trim DLF stake, but reinvest proceeds

The Singh family sells $783 million worth of shares, but uses the proceeds to strengthen its grip over a unit that holds some of DLF's property developments and to pay back money owed to DLF.

The founders of Indian property developer DLF Limited late Tuesday sold a 9.9% stake in the company through a placement, raising Rs38.64 billion $783 million. However, this wasn't a simple case of the majority owners trying to secure a profit, or taking some of their investments of the table. Rather, they will reinvest part of the money into DLF through a wholly-owned venture and use the rest to buy the convertible preference shares held by a third party in...

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