DCM Shriram Consolidated sells its share in SBM Land Redevelopment Project, Delhi

DCM Shriram Consolidated Ltd (DSCL) an integrated business group, with extensive and growing presence across the entire agri-rural value chain and chloro-vinyl industry, at its Board Meeting today approved the sale of its 50% rights, title and interests in SBM Land Redevelopment Project. The company simultaneously signed binding agreements with M/s BES Buildcon (P) Ltd., New Delhi (a subsidiary of M/s. DLF Ltd), for the aforesaid transaction.

SBM Land Redevelopment Project has an area of 38 acres for development as on date after surrendering about 74 acres to DDA in terms of the relevant orders of the Hon'ble Supreme Court. The land is situated in West Delhi, approximately 10 k.m. from Connaught Place.

The Company has been receiving several offers for participation in this project directly as well as through ICICI Bank, who was appointed to assist the Company in valuation and sale. The offer received from DLF Ltd was considered and accepted as best offer.

The total project has been valued at Rs 1675 crs. DSCL owns 50% undivided rights and titles in this land redevelopment project. Accordingly, the Company has received Rs 837.50 crs. as consideration immediately on signing of the Agreement to Sell.

Commenting on the sale, in a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said:

"We have our hands full with multiple initiatives that we are implementing to augment our long-term growth and performance. It has been on our mind for sometime to monetise this asset to support our growth plans. The sale of this SBM Land Redevelopment Project represents a well considered exit option at a satisfactory price, to a reputed company.

We intend using the cash realized from this transaction to part fund our expansion plans and new initiatives while simultaneously enhancing the quality of our balance sheet."

Source : Equity Bulls

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