DLF Soars 9% as Promoters Raise Stake

DLF shares jumped nearly 9 per cent on Thursday after the real estate developer's promoter increased stake in the company. Buying of shares by promoters is taken positively by investors because it shows that promoters are confident about the company's future, traders said.

According to Bombay Stock Exchange data, Kavita Singh bought 23 lakh shares in DLF on November 23 and 24, raising her stake in the company from 0.40 per cent to 0.53 per cent. The open market transaction is valued at nearly Rs 25 crore. Mr Singh is the wife of Rajiv Singh, who is the executive vice chairman of DLF.

According to PTI, the total shareholding of the promoter group in DLF has gone up to 74.99 per cent post the share purchase. Promoter holding in listed companies is capped at 75 per cent, according to listing norms. (Read)

Promoters often raise stake in companies when they believe that the stock is trading below its intrinsic value, analysts said.

DLF shares closed 5.97 per cent higher at Rs 113.55 as compared to 0.71 per cent gain in the broader Sensex.