Shares of DLF rallied 2.9 percent intraday Tuesday on approval from Competition Commission of India for joint venture with Singapore’s sovereign wealth fund GIC.

The India’s largest realty firm said the Competition Commission of India (in its meeting on November 10) has approved proposed joint venture and detailed Order of the commission in this regard is awaited. Pursuant to receipt of this approval, both parties are initiating the necessary steps to successful closing of this transaction, it added. On September 2, DLF Home Developers (DHDL), a wholly-owned subsidiary of DLF, and GIC (Singapore’s sovereign wealth fund) had signed an agreement to enter into a joint venture to invest in two upcoming projects located in Central Delhi.

As per proposed JV, GIC will invest a sum of approximately Rs 1,990 crore in these projects. According reports by CNBC-TV18, the real estate company may use this fund to reduce debt. As of September 2015, it has debt of Rs 22,520 crore on its books. GIC is a leading global investment firm with over USD 100 billion in assets under management.

Real estate developer DLF has approximately 288 million square feet of development potential with 45 million square feet of projects under construction. At 11:15 hours IST, the scrip of DLF was quoting at Rs 112.20, up Rs 2.20, or 2 percent on the BSE.

Posted by Sunil Shankar Matkar