DLF Ltd.'s promoters expect to sign a deal in the first quarter of 2017 for the sale of a 40% stake in the company's rental arm, the Press Trust of India reported, citing Saurabh Chawla, the company's senior executive director for finance.

After due diligence, Chawla said in a conference call that the company received two offers from marquee investors.

The stake sale in DLF Cyber City Developers Ltd. is estimated to be valued between 120.00 billion Indian rupees and 140.00 billion rupees, with proceeds to be reinvested into DLF Ltd., according to the report.

Singaporean wealth fund GIC and Blackstone Group LP were among a short-listed group of six bidders vying for the stake.

Meanwhile, Chawla also noted that the residential property market has slowed down and softened since the government's implementation of a plan to demonetize certain bills on Nov. 8., as home buyers defer their acquisition plans. Still, he expects sales to return to normal in the next two to three quarters, according to the Dec. 10 report.

As of Dec. 9, US$1 was equivalent to 67.52 Indian rupees.