The board of directors of DLF, a leading real estate developer, have approved the 40% promoter's sale stake in DLF Cyber City Developers (DCCDL) to institutional investors.

The company said, 'The board of directors have approved sale stake of promoter group companies namely Rajdhani Investments & Agencies, Buland Consultants and Investments, Sidhant Housing and Development Company ('CCPS holders') holding 159.70 million or 40% of cumulative compulsorily convertible preference shares of Rs.100 each ('CCPS') of DCCDL.'

'The CCPS holders, subject to receipt of all necessary approvals and consents in accordance with all applicable laws, shall invest back in the company, a substantial amount, net of taxes and other charges of the consideration received from the sale of CCPS,' it added.

Post completion of this transaction, the promoter group will hold 60% stake in DCCDL.

The stake sale will allow the company to to drive sustainable and long-term growth and development to the rental business and createt he optimum structure in order to improve efficiency and control and to reduce conflicts of interest.

Shares of the company gained Rs 1.4, or 1.01%, to trade at Rs 140.05. The total volume of shares traded was 504,486 at the BSE (10.09 a.m., Friday).