 "Godrej Properties to raise Rs 6,000 crore via QIP for business expansion")
Godrej Properties will raise Rs 6,000 crore by selling equity shares to institutional investors through QIP issue as it looks to expand business amid strong demand for residential plots and apartments.
On Wednesday, the company has launched its Qualified Institutional Placement (QIP) issue to raise up to Rs 6,000 crore.
According to market sources, Godrej Properties has received a strong response from domestic and global investors and the company will raise the entire Rs 6,000 crore.
The QIP issue is likely to be closed on Thursday.
Last month, the company's board approved raising of up to Rs 6,000 crore through the issue of securities.
In a regulatory filing on Wednesday, Godrej Properties informed that the QIP Placement Committee approved the floor price for the QIP issue at Rs 2,727.44 per equity share.
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Godrej Properties' share price closed at Rs 2,833.05 apiece on Wednesday, down 2.35 per cent from Tuesday.
Godrej Properties is one of the leading developers in the country. It has a major presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune and Bengaluru. It has entered into Hyderabad market recently.
In the last fiscal, the company's sales bookings jumped 84 per cent to a record Rs 22,527 crore, the highest among listed realty firms in 2023-24.
Godrej Properties has set a target of achieving Rs 27,000 crore worth of sale bookings.
During the April-September period of this fiscal, Godrej Properties' sales bookings value grew 89 per cent annually to over Rs 13,800 crore. This is the highest-ever booking value achieved by Godrej Properties during the first half of a fiscal year.
To expand its housing business, Godrej Properties acquires land through outright purchases as well as forming partnerships with landowners for joint development.
Godrej Properties has added 8 new land parcels in the first six months of this fiscal with a total estimated saleable area of about 11 million square feet and a total estimated booking value potential of around Rs 12,650 crore.