DLF shares gain over 4.5 per cent as cheer continues over SAT order

Mumbai: Rising for the third straight day, shares of DLF rose by 4.5 per cent today as investors continued to cheer the Securities Appellate Tribunal's 'majority order' quashing the three-year market ban imposed on the realty giant by regulator Sebi. The stock surged 4.29 per cent to settle at Rs164.25 on the BSE. During the day, it climbed 4.88 per cent to Rs 165.20. At the NSE, the scrip closed the day at Rs164.50, up 4.51per cent from its previous close.

The stock had gained over 6 per cent on Friday also. "DLF and its promoters have agreed to defer conversion of the 9 per cent Compulsory Convertible Preference Shares issued by its subsidiary, DLF Cyber City Developers by one year. This development, while largely valuation neutral, eliminates an immediate overhang on the stock. In another positive, SAT has reduced the ban on DLF from accessing capital markets substantially from 3 years to 6 months," said Nischal Maheshwari, Head Research, Edelweiss Securities Limited.

In a major relief for DLF, the Securities Appellate Tribunal had on Friday passed a 'majority order' quashing the three-year market ban imposed on the realty giant by regulator Sebi, even as the Presiding Officer dissented. Sebi's orders imposing similar ban on DLF's six top officials, including Chairman K P Singh and his children Rajiv Singh and Pia Singh, were also set aside by the same majority order, passed by two members of the SAT. DLF had on Saturday said its promoters have deferred till March next year conversion of securities held in the realty major's subsidiary into equity shares while slashing the coupon rate from 9 per annum to 0.01per cent. The deadline to convert these Compulsorily Convertible Preference Shares (CCPS) into shares was March 19 this year, but the same could not be executed in view of SEBI's order in October 2014 banning DLF and six executives from capital market for the next three years.