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DLF Ltd

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BSE Code : 532868 | NSE Symbol : DLF | ISIN : INE271C01023 | Industry : Realty |


Company History

DLF Ltd is engaged in the business of colonization and real estate development. The company operations span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects. It is also engaged in the business of leasing, generation of power, provision of maintenance services, hospitality and recreational activities, life insurance and retail chain outlets. Its internal business includes development business and rental business. The development business of the Company is involved in the sale of residential spaces, select commercial offices and commercial complexes.

The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any down-cycles in the market. The company has also forayed into infrastructure, SEZ and hotel businesses. It operates in all aspects of real estate development, ranging from acquisition of land, to planning, executing, constructing & marketing of project. The group is also engaged in the business of generation and transmission of power, provision of maintenance services, hospitality and recreational activities.

The business of DLF is organized on a SBU basis. The Homes SBU caters to 3 segments of the residential market - Super Luxury, Luxury and Mid-Income. The product offering involves a wide range of products including condominiums, duplexes, row houses and apartments of varying sizes.

DLF Ltd was incorporated in July 04, 1963. The Company was founded by Chaudhary Raghuvendra Singh. The company developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949. Following the passage of the Delhi Development Act in 1957, the state assumed control of real estate development activities in Delhi, which resulted in restrictions on private real estate colony development. They therefore commenced acquiring land at relatively low cost outside the area controlled by the Delhi Development Authority, particularly in the district of Gurgaon in the adjacent state of Haryana.

This led to their first landmark real estate development project DLF Qutab Enclave, which has now evolved into DLF City. DLF City is spread over 3,000 acres in Gurgaon and is an integrated township, which includes residential, commercial and retail properties in a modern city infrastructure with schools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF Golf and Country Club with night golfing facilities.

During the period 1950-1964, the company developed 22 urban colonies. In the year 1985, the company commenced development of the 3,000-acre DLF Ciry in Gurgaon. In the year 1996, the company ventured into group housing projects. In the year 1999, they ventured into Grade A office spaces in Gurgaon.

In the year 2002, the company ventured into organized retail complexes. In the year 2003, they commenced development of DLF Cybercity in Gurgaon. In the year 2004, they launched premium residential complexes with luxurious milieu of Golf Links.

In the year 2007, the company formed JVs with Prudential Financial, Inc USA for Life Insurance & AMC. They also entered into capital markets. In the year 2008, they commenced operations of DLF Emporio, India's first luxury mall. In September 2008, the joint venture company DLF Pramerica Life Insurance Company Ltd, commenced operations with a purpose to market and sell life insurance products in the country. In the year 2009, the company launched Capital Greens, the largest private sector residential project in Delhi. Also, they exited its asset management JV during the year.

During the year 2009-10, the company approved the integration of Caraf Builders & Constructions Private Limited (Caraf) (the holding company of inter-alia, DLF Assets Pvt Ltd), DLF Info City Developers (Chandigarh) Ltd and DLF Info City Developers (Kolkata) Ltd with DLF Cyber City Developers Ltd (DCCDL), a 100% subsidiary of DLF.

In October 2009, DLF was conferred Best Global Developer Award, 2009 by Euromoney. In November 2009, DLF sold DT Cinemas and entered into a long term strategic alliance with PVR. In March 2010, Caraf (along with its subsidiaries) became a wholly-owned arm of Cyber City DLF's subsidiary, thus giving effect to the integration process.

During the year 2010-11, its subsidiary DLF Home Developers Ltd, acquired additional 50% interest of Delanco Real Estate Pvt Ltd and 50% interest of Design Plus Architechture Pvt Ltd. In May 2010, DLF launched second phase of Garden City, DLF New Indore. In May 2011, after the phenomenal response to first phase of its project Garden City, DLF New Indore, DLF, announced the launch of the second phase of the project.

In December 2011, the company along with its joint venture partner Hubtown Ltd sold 100% of their respective shareholding in DLF Ackruti Info Park (Pune) Ltd (DLF Ackruti), to an entity controlled by real estate fund affiliated with The Blackstone Group, BRE/Mauritius Investments II, after obtaining all necessary approvals. Consequence for this disinvestment, DLF Ackruti ceased to be a subsidiary of the company with effect from December 28, 2011.

In 2012, DLF launched 8.3 km expressway project in Gurgaon in partnership with Haryana Urban Development Authority (HUDA). During the year, DLF commenced operation of second multilevel parking facility at Baba Kharak Singh Marg in Delhi.On 12 June 2012, DLF announced that the company's wholly owned subsidiary, DLF Hotel Holdings Ltd, has divested its entire shareholding in Adone Hotels and Hospitality Ltd (Adone) for Rs 567 crore. The sale of the shareholding was undertaken in line with DLF's stated objective of divesting its non-strategic assets. On 13 August 2012, DLF announced that the company and two of its subsidiaries have entered into an agreement with Lodha Developers Ltd. for sale of their stake in Jawala Real Estate Private Ltd. for an estimated enterprise value of approximately Rs 2700 crore. This is an important step in the company's strategy to divest certain non-core assets and continue its focus on core business. The transaction is expected to be completed by the end of October 2012.

On 25 July 2013, DLF announced that it has signed definitive agreements to sell its 74% equity stake in its the Life Insurance Joint Venture - DLF Pramerica Life Insurance Company Ltd, a joint venture with Prudential International Insurance Holdings Ltd (PIIHL), a subsidiary of Prudential Financial, Inc USA to Dewan Housing Finance Corporation Ltd (DHFL) & its group entities.

In 2014, DLF's subsidiary Emporio Limited concluded India's first Commercial Mortgage Backed Security (CMBS) issuance of Rs 525 crore, with a coupon rate of 10.90% p.a. and Legal Maturity of 7.5 years. DLF Emporio owns and operates approximately 3 lakh sq. ft of a Luxury Mall in New Delhi, India. Also during the year, DLF became India's first development company to get ISO certificate.

On 9 February 2014, DLF Global Hospitality Limited (DGHL), a 100% step down subsidiary of DLF, announced that it has completed the sale of 100% equity stake in Silverlink Resorts Ltd. (SRL), the owner of Amanresorts, to Aman Resorts Group Ltd. (ARGL), a Joint Venture between Peak Hotels & Resorts Group Ltd. (PHRL) and Mr. Adrian Zecha, the founder of Amanresorts, for an enterprise value of USD 358 million. The sale has been in the form of management buyout. DLF Global Hospitality Limited had purchased 100% equity in Amanresorts in 2007 from a group of investors. The deal excludes the iconic Lodhi Hotel in Delhi which shall remain a part of DLF Ltd.

On 2 September 2015, DLF announced that its wholly-owned subsidiary DLF Home Developers Ltd. (DHDL) and GIC, Singapore's sovereign wealth fund, have entered into a joint venture to invest in two upcoming projects located in Central Delhi. Both projects will be developed under DHDL. GIC will invest a sum of approximately Rs 1990 crore. The joint venture is expected to benefit from GIC's experience of investing in integrated developments across the globe.

In 2016, DLF launched DLF Mall of India, the first destination mall of the country, in Noida NCR. Spread across 2 million square feet (GLA), the essence of the mall is that of a destination, which encapsulates not just shopping but a never-before food & entertainment experience, which is thoughtfully and craftfully divided in 5 zones. The mall is spread over 7 floors and houses over 330 brands.

On 31 May 2016, DLF Utilities Ltd. (DUL), a subsidiary of DLF, concluded the transaction involving the sale of its cinema exhibition business operated under the brand name DT Cinemas, on a slump sale basis, for a revised consideration of Rs 433 crore to PVR Limited. On 30 May 2016, DUL executed an Amendment Agreement with PVR Limited in connection with sale of the cinema exhibition for a revised consideration of Rs 433 crore. The Amendment Agreement, inter alia provides for exclusion DT Savitri (1 screen) and DT Saket (6 screens) from the transaction. Accordingly, subject to satisfaction of statutory, regulatory and other customary conditions precedent, DUL proposes to sell 32 screens in National Capital Region and Chandigarh to PVR Limited. Earlier, on 9 June 2015, DUL entered into definitive agreements to sell its cinema exhibition business operated under the brand name of DT Cinemas to PVR Limited, on a slump sale basis for an aggregate consideration of about Rs 500 crore.

In 2017, GIC Real Estate became a partner in DLF Cyber City Developers Limited (DCCDL) following conclusion of Compulsorily Convertible Preference Shares (CCPS) sale transaction in December of 2017. The promoters of DLF subsequently infused Rs 9000 crore via subscription to compulsorily convertible unsecured debentures (CCDs) and warrants of DLF Ltd. DCCDL owns and operates a rent yielding portfolio of office and retail assets of nearly 27 million square feet, with significant further development potential. Established in 1981 to manage Singapore's foreign reserves, GIC is a global long-term investor with well over US$100 billion in assets in over 40 countries worldwide.

During the year 2017, DLF launched 'The Chanakya Mall', one of the finest mall developed in Luyten's Delhi.

During the year 2019-20, the Company had 4 material unlisted subsidiaries, DLF Cyber City Developers Limited, DLF Assets Private Limited, Caraf Builders & Construction Private Limited (since merged with DCCDL) and DLF Home Developers Limited. DLF Power & Services Limited became a material unlisted subsidiary with effect from 1 April 2019. The Company through its wholly-owned subsidiary, DLF Home Developers Limited (DHDL), formed a joint venture with Green Horizon Trustee Limited (an affiliate of HINES') for the development of a high-end commercial project in Gurugram.

The Hon'ble National Company Law Tribunal, Principal Bench, New Delhi, vide its order dated 4 January 2019, has sanctioned the Scheme of Arrangement involving demerger of SEZ undertaking of DLF Home Developers Limited (DHDL), a wholly-owned subsidiary
of the Company into DLF Info City Chennai Limited (DICCL), a wholly-owned subsidiary of DHDL

In year 2021, the Hon'ble NCLT, Chandigarh vide its Order dated 24 February 2021 has approved the Scheme of Amalgamation of DLF Property Developers Limited, Genisys Property Builders & Developers Private Limited and Ghaliya Builders & Developers Private Limited
(Transferor Companies) with DLF Luxury Homes Limited (Transferee Company), whereby the transferor companies stand merged with
the transferee company effective from the Appointed Date of 1 April 2019.

During year 2022, the Company launched ONE Midtown', a luxury group housing project. A Scheme of Arrangement, comprising wholly-owned subsidiary companies, DLF Phase-IV Commercial Developers Limited, DLF Real Estate Builders Limited and DLF Residential Builders Limited (Transferor Companies) and demerger and transfer/ vesting of Real Estate Undertaking of DLF Utilities Limited (Demerged Company) with DLF Limited (Transferee Company) was filed before the Hon'ble NCLT, Chandigarh vide Order dated 2 February 2022 and consequent to this, the Transferor Companies stand merged with the Transferee Company w.e.f. the Appointed date, 1 April, 2021.

The Company launched its luxury development, The Arbour in Sector-63, Gurugram, during the year 2022-23 costing Rs 8000 Crore. Other launches included The Grove at DLF5, Garden City Enclave at Sector 93 at Gurugram and The Valley Gardens at Panchkula.