Godrej Properties launches QIP to raise up to Rs 3,750 cr via share sale

Realty firm Godrej Properties on Tuesday launched a qualified institutional placement (QIP) issue to raise up to Rs 3,750 crore through the sale of shares.

In a regulatory filing, the company said the QIP committee of the board of directors, in its meeting held on Tuesday, approved and adopted the preliminary placement document in connection with the issue.

It also approved the opening of the issue from March 9.

The panel approved the floor price for the issue at Rs 1,513.39.

Godrej Properties did not disclose the amount it has proposed to raise through QIP.

On Monday, its shareholders approved the proposal to raise up to Rs 3,750 crore through the issue of securities.

The Mumbai-based developer informed, in a regulatory filing, that a special resolution in this regard was approved by shareholders with the requisite majority.

Godrej Properties had sought shareholders' approval through a postal ballot.

The special resolution was to approve the raising of funds in one or more tranches by the issuance of securities for an amount not exceeding Rs 3,750 crore.

Last month, the board approved the raising of the capital.

"We have taken an enabling resolution. We will see now in the next few weeks and months whether to actually do anything on it. If we choose to do that, rational would be to acquire projects at attractive valuations," Godrej Properties Chairman Pirojsha Godrej had told PTI in an interview last month.

According to an investor presentation, the company's sales bookings rose 25 per cent to Rs 1,488 crore in the third quarter of this fiscal year.

In the first nine months of 2020-21, sales bookings were up 16 per cent at Rs 4,093 crore.

During the full 2019-20 fiscal, the company posted record sales bookings of Rs 5,915 crore, the highest among listed realty firms.