Media reports had earlier suggested DLF had shortlisted six potential buyers for the sale of 40 per cent stake held by promoters in its rental arm.

"Multiple bids from sovereign funds and global private equity firms (were) received in June 2016. All bidders are aligned to create a platform partnership on a long term basis to own and develop commercial assets, and acquire assets inorganically in the marketplace. The company has shortlisted bidders and allowed access to the virtual data room and vendor," DLF said in its post-result investor presentation.

According to the company, the conclusion of the transaction will be an important step to create two 'pure plays' - a DevCo business with a nominal net debt, 100 per cent owned by DLF and an independent RentCo business in which DLF will have 60 per cent stake.

The real estate giant is likely to raise Rs 12,000 crore from the transaction. With the completion of the stake sale, the company hopes to substantially lower its debt which at present stands at around Rs 20,000 crore.

The company said sales were muted in Q1 in various micro markets as conditions in New Gurgaon and rest of India business continued to remain subdued.

The company would focus on completing legacy projects within FY17 to fulfil customer commitments. "The company continues to sell from the existing live projects, create finished stock in existing launched projects, ready to be sold when the demand scenario improves," it said.

The company said in office space rental, the current uptick continues. However, new leasing momentum is impacted as the company has virtually nil inventory at most places.

DLF is following a strategy to aggregate leasing in favour of high value customers. Its mall rental business has seen a healthy occupancy at Mall of India in Noida, one of the largest in the country with 2 million square feet space. The mall has witnessed around 95 per cent leasing.

Luxury mall Emporio at Chanakyapuri in New Delhi is scheduled for soft launch in Q4 FY17.

Aided by the sale of its flagship movie theatre chain DT Cinemas to PVR for Rs 372 crore, DLF on Monday reported a twofold jump in consolidated net profit at Rs 261 crore for the quarter ended June, compared with Rs 126 crore in the same period a year ago.

Income from operations fell 22 per cent to Rs 1,867 crore, from Rs 2,389 crore in the year-ago period.

DLF's total income, however, declined to Rs 2,026 crore in the quarter under review from Rs 2,520 crore in the year-ago period. The company's finance cost increased to Rs 748 crore from Rs 622 crore.