DLF Ltd, India's largest realty firm, on Monday said it has received approval of the Competition Commission of India (CCI) for the joint venture with Singapore's sovereign wealth fund GIC, which is investing Rs 1,990 crore in two projects here.
The realty firm would use this fund to boost cash flow and reduce debt, which stood at Rs 22,520 crore as of September 30.
DLF had sold in September about 50 per cent stake each in two upcoming projects in the national capital to GIC.
On September 2, DLF had announced that its arm DLF Home Developers and GIC have entered into a joint venture for two upcoming projects located in Central Delhi.
"GIC will invest approximately Rs 1,990 crore."
In a regulatory filing, DLF informed the "Competition Commission of India vide its letter dated November 12 has communicated that the Commission in its meeting held in November 10, 2015 considered and approved the proposed combination in terms of sub-section (1) of the Section 31 of the Competition Act, 2002".
The detailed order of the commission in this regard is awaited. Pursuant to receipt of this approval, both parties - DLF and GIC - are initiating the necessary steps to successful closing of this transaction, the filing added.
DLF is raising private equity at project levels after a gap of 4-5 years. It has sold around 50 per cent shareholdings in the two upcoming projects, adjacent to its existing project 'Capital Green' at Moti Nagar here.
With sluggish property market in last 2-3 years, DLF had announced in February that it would raise over Rs 3,000 crore through divestment or joint ventures in certain projects to improve cash flow and reduce debt.
"We hope that this investment is a beginning of a new relationship with GIC at the project level. We look forward to working together with GIC in many projects, both residential and commercial," DLF senior executive director-finance Saurabh Chawla had said on the GIC deal.
Shares in DLF, on Monday, ended 0.23 per cent lower at Rs 110 apiece on the BSE, whose benchmark Sensex index finished up 0.58 per cent.
GIC is a global investment firm with well over $100 billion in assets under management.
DLF has a land bank of 300 million square feet.