DLF shares fall 3% amid heavy volumes, block deal buzz by promoters

Shares of DLF dropped about 3 per cent during the early trading session on Tuesday amid the reports of a block deal by the promoters of the Delhi-NCR based real estate major. The heavy volumes on both the exchanges hints towards the execution of the bulk deal.

According to some media reports, promoters of DLF were looking to sell more than 2.15 crore shares of the real estate major to Rs 1086.2 crore. The deal's issue price is set at a 3 per cent discount to the previous close of the stock at Rs 518.65.

According to the data from BSE, more than 2.17 crore shares of DLF worth Rs 1,096.70 crore were traded as of 10.05 am on Tuesday. Similarly, 62.8 lakh equity shares amounting to Rs 319.23 crore exchanged hands on the National Stock Exchange (NSE) at the same time.

The heavy volumes hint towards the execution of bulk deal. However, Business Today could not ascertain the details of traded quantity, buyers and sellers at the time of writing this report.

Shares of DLF cracked about 3 per cent during the trading session on Tuesday to Rs 504.05, before making a mild recovery, amid the heavy trading volumes. The company was commanding a total market capitalization of more than Rs 1.25 lakh crore. The stock has gained about 50 per cent in the last one month.

DLF reported earnings were better than the street's estimates for Q1FY24. It clocked a consolidated net profit of Rs 526.11 crore for the quarter ended June 2023, up from Rs 469.21 in the same quarter last year.  The total income in the April-June quarter stood at Rs 1,521.71 crore, posting a marginal rise.

After Q1 earnings, HDFC Securities has suggested to buy DLF with a target price 576 per share, while ICICI Securities has the same rating on the stock with a target price of Rs 532 apiece. Nuvama Institutional Equities also suggested buying the stock, but its target has already been met.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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