Debt-ridden real estate company DLF is seeking to grow its rental business. The beleaguered company, which last week was, as per an interim order by the Supreme Court of India, asked to deposit Rs.630 crore in an anti-trust case, is looking to grow rental business. Towards this end, the company has asked its independent directors for options to grow it.
A statement to the Bombay Stock Exchange said the board of directors of DLF had requested the independent directors of the company who are part of the Audit Committee, chaired by K. N. Memani to “comprehensively evaluate, review and recommend various strategic options available for the company to drive sustainable and long-term growth and development of the rental business.”
The committee will also seek to create the optimum structure for the rental business “in order to improve efficiency and control and to reduce conflicts of interest,” the statement said.
The company’s rental business has been performing well registering an income of Rs.525 crore in the quarter ended June 2014. This, in fact, accounted for about one-third of the company’s sales during the quarter. Earlier, DLF said it expected rental income to grow 8 per cent in 2014-15 to around Rs.2,100 crore. The DLF stock has been declining over the last month, having lost about 10 per cent of its value. It closed last week at Rs.177.65, down 2.95 per cent on the Bombay Stock Exchange.
