Kulkarni Developers Dilutes Its Stake

The media had reports on February 05, 2007 that DS Kulkarni Developers Ltd. may dilute its 16% stake in Noida subsidiary company for about Rs 300-350 cr. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.

DS Kulkarni Developers Ltd. has vide its letter inter-alia stated, "We are denying the news item and the contents of the news item. It is true that we will be forming a Company in Noida to carry out the same activity as ours and will eventually be a subsidiary (Noida Company) of our Company in near future. The subsidiary is looking to finance the project through its own contribution, private equity and debt but we have not yet discussed it with any of the real estate venture funds whose names appeared in the media and we are in discussion with some private equity players. The holding of DSK Group will be 76% stake and 24% stake will be held by local Noida based developer in the Noida Company, so that the holding stake will be with the DSK Group. The project will start in the calendar year 2007 end or in 2008 and not in the Financial Year 2007 end as stated in the media. All these projects will depend on registrations and licenses to be received from the Uttar Pradesh Housing Development Board for which applications are in process. It is totally wrong and we deny these facts that D S Kulkarni is looking to dilute 16% stake in Noida subsidiary Company and looking to raise up to Rs. 300 - 350 crores from stake sale. The investors will be informed transparently when everything will be finalized in this respect as the talks and negotiations are going on." -- www.nseindia.com