Soon after the DLF announced the merger of its commercial realty arm DLF Assets (DAL) with DAL, some eyebrows were raised at the valuation of the deal. To clarify all these doubts, the DLF management held a conference today.

In the conference, the management has been trying to convince the analysts that the company has gone through a rigorous process before reaching the agreement.

The merger of DAL with one of DLF’s subsidiaries, DLF Cyber City Developers Limited, carries a ratio of 60:40 in which promoters will hold 40% stake whereas DLF will have 60% stake.

They refused to provide exact valuations of how much DLF Assets have actually been valuated at and what the exact valuation of the division that is DLF Cyber City has also been attained.

Three years ago DLF Assets Ltd. (DAL) has signed a co-developer agreement with DLF, for about 13.5 million square feet, out of which about 6 million square feet has been delivered, which has been valuated. The analysts have raised fingers on the remaining 7 million odd square feet that has not been valuated yet.

In addition to that, a receivables amounting Rs 2,800 crore were due from DLF to DLF Assets, which the analysts think will go down after the merger.

The management also tried to convince the analysts that shareholders have been benefited from this deal.

DLF has sold commercial property to DAL, which is controlled by KP Singh, who holds 78% stake in the DAL, combined with his son and DLF promoter Rajeev Singh.