Godrej Properties raises Rs 700 cr via rights issue

Says rights issue has been oversubscribed

Godrej Properties, the real estate arm of the Godrej group, has raised Rs 700 crore through a rights offering. The rights issue has been over subscribed, the company said in a statement.
 
"...rights issue has witnessed demand in excess of the maximum amount it sought to raise based on reports from the registrar to the issue," the company said.

Godrej Properties' rights issue comprised of 21.53 million shares offered to existing investors at Rs 325 per share.

The company will announce allotment process in the next few days, it said.

Shares of the Mumbai-based realtor were last trading at Rs 391, up 1% on BSE.

Pirojsha Godrej, MD & CEO, Godrej Properties said, “We believe that the funds generated will strengthen our financial position and our ability to continue to add projects across India.”

This was Godrej Properties third capital market fund raising after its initial public offering (IPO) in December 2009 and an institutional placement program (IPP) in March 2012.

Kotak Mahindra Capital was the lead manager to the rights issue.