DLF shares jump on equity stake sale in insurance joint venture

DLF shares jump on equity stake sale in insurance joint ventureShared of real estate giant DLF jumped nearly 2 per cent to Rs 179 apiece in early morning deals on Friday on BSE after the company announced its decision to quit life insurance business.

DLF, India's largest realty company, announced on Thursday that it had signed an agreement to offload its 74 per cent equity stake in the life insurance joint venture called DLF Pramerica Life Insurance Co Ltd to Dewan Housing Finance Corp.

The reality firm said in a statement, "The Company today signed definitive agreements to sell its 74 per cent stake in the life insurance joint venture DLF Pramerica Life Insurance... to Dewan Housing Finance and its group entities."

The decision to exit from the life insurance business is in line with the reality giant's ongoing strategy to offload its non-core assets so that it could focus on its core business.

The company didn't reveal the financial details of the transaction, saying it would provide details only after receiving all approvals. However, sources pegged the value of the deal nearly Rs 350 crore.

The remaining 26 per cent stake in DLF Pramerica Life Insurance Co Ltd JV is owned by US-based Prudential Financial's subsidiary Prudential International Insurance Holdings Ltd.

DLF Pramerica Life Insurance Co Ltd was created in 2007. In the past two financial years, the JV suffered a combined loss of more than Rs 250 crore.