Mr. K.P.Singh, welcome to the real world – Dalal Street. On Dalal Street, only folks who create wealth and who help the nation grow its economy have respect, not Land Lords who just want to make money by virtue of Land Holdings. On this street everybody knows how Realtors made money and hence this carnage on your stock.
Considering minimum requirement of 10% to stay listed, the company can buy 1.8%, which on the current market cap implies ~Rs 1,800 crore outgo. It has March 08 net gearing of 50% (Rs ~10,000 cr net debt). The company plans to fund the buyback using internal accruals, which is quite feasible.
However, as per company law, we believe that DLF will be constrained from issuing fresh equity for a period of six months (from the closure date of the buyback).