Godrej Properties gained 4.14% to Rs 1512 after the company launched a qualified institutional placement (QIP) of equity shares on Tuesday (9 March 2021).
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 9 March 2021. The panel approved the floor price for the issue at Rs 1,513.39.
The floor price is at 4.24% premium to Godrej Properties' closing price of Rs 1451.85 on Tuesday. The board is scheduled to meet on 15 March 2021 to fix the issue price of the equity shares to be allotted to qualified institutional buyers, pursuant to the Issue.
Godrej Properties did not disclose the amount it has proposed to raise through QIP. On Monday, the company's shareholders approved the proposal to raise up to Rs 3,750 crore through the issue of securities.
The company intends to use QIP proceeds to meet the funding requirements for existing and new development projects, to fund business growth, business purposes, capital expenditure and general corporate purposes as per growth and business related plans. The company said it also requires funding for servicing, repaying, prepaying and refinancing of loans to reduce cost of indebtedness.
Godrej Properties is engaged in construction and real estate development. The company's consolidated net profit tumbled 69.3% to Rs 14.35 crore on a 55.5% fall in net sales to Rs 170.49 crore in Q3 FY21 over Q3 FY20.
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