DLF board to consider buyback at July 10 meet

Real estate major, DLF's board plans to convene on July 10 to consider a buyback.

Speaking on the rationale for the same, Ramesh Sanka, CFO, DLF, said the share price does not reflect the intrinsic value of the company. "Internal cash-flow generation, and low share price were the key triggers behind the move."

According to Sanka, the exact contours of buyback to be decided in board meet later.

Excerpts from CNBC-TV18’s exclusive interview with Ramesh Sanka:

Q: Have you decided on the contours of this buyback? How much money are you going to lay out?

A: No. This will be decided at the July 10 board meeting.

Q: Why are you doing it?

A: There are three fundamental reasons why we have to do this. First, we are a company generating lot of internal cash flow. Today, we have virtually paid for all our land bank. This is one of our best ways to use excess cash.

Second, today’s share price does not reflect the intrinsic strength of the company and its future growth potential. There is huge embedded value in DLF which is not being understood by the market.

Third, we want to say how strongly we believe in our brand and company. We want to give the best return to our shareholders, especially minority shareholders. This was the best way to tell investors about the strength of the company and also return the actual strength as being reflected in the share price.