DLF, the Indian arm of the life insurance company DLF Pramerica is looking to exit the joint venture by selling its stake. Reports are that DLF is in talks to sell a majority stake in its life insurance joint venture to HCL Group for about 5 billion rupees.
The real estate sector has been under tremendous pressure for last couple of years and DLF too is learnt to be starving for working capital and cash. The real estate giant has a debt of over $4.2 billion. DLF plans to pay off a huge chunk of this debt from the money raised by selling stake in DLF Pramerica Life Insurance Company.
DLF’s primary business is development of residential, commercial and retail properties. In addition to real estate, DLF is also present in Retail and Hospitality industries. The company’s US$ 2 billion IPO in July, 2007 was India’s biggest IPO in history. With its increased assets, DLF has been trying to increase its operations all over India
DLF holds 74 percent stake and Pramerica, the trade name for Prudential Financial, Inc holds the remaining 26 percent.
