Godrej Properties Launches ₹6,000 Crore QIP to Boost Growth
Godrej Properties has launched a qualified institutional placement (QIP) to raise up to ₹6,000 crore. This move aims to fund the company's ambitious expansion plans, particularly in key markets like Delhi-NCR, MMR, Pune, Bengaluru, and Hyderabad.
Godrej PropertiesQipReal EstateFundraisingExpansionReal Estate MumbaiNov 27, 2024
Last month, the company's board approved the raising of up to ₹6,000 crore through the issue of securities. In a regulatory filing, Godrej Properties informed that the QIP Placement Committee authorized the opening of the issue on November 27, 2024. The panel also set the floor price for the QIP issue at ₹2,727.44 per equity share. On Wednesday, Godrej Properties' share price closed at ₹2,833.05, down 2.35 per cent from the previous day.
Godrej Properties is a prominent developer in the country, with a significant presence in key markets such as Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company has recently expanded into the Hyderabad market, further strengthening its portfolio.
In the last fiscal year, Godrej Properties recorded a 84 per cent jump in sales booking, reaching a record ₹22,527 crore. This was the highest among listed realty firms in 2023-24. The company has set an ambitious target of achieving ₹27,000 crore worth of sale bookings. During the April-September period of this fiscal, Godrej Properties' sales booking value grew by 89 per cent annually to over ₹13,800 crore. This marks the highest-ever booking value achieved by the company 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. In the first six months of this fiscal year, the company has added 8 new land parcels with a total estimated saleable area of about 11 million square feet and a total estimated booking value potential of around ₹12,650 crore.
Godrej Properties' strategic approach to land acquisition and development has been a key driver of its success. The company’s focus on high-growth markets and its commitment to delivering quality projects have made it a preferred choice for homebuyers and investors alike. With the QIP, Godrej Properties is poised to further solidify its position in the Indian real estate market and achieve its growth targets.
Frequently Asked Questions
What is a Qualified Institutional Placement (QIP)?
A Qualified Institutional Placement (QIP) is a method by which listed companies in India can issue shares to institutional investors without the need for a detailed prospectus. It is a quick and cost-effective way to raise funds.
How much does Godrej Properties aim to raise through the QIP?
Godrej Properties aims to raise up to ₹6,000 crore through its QIP to fund its growth and expansion plans.
What is the floor price for the QIP issue announced by Godrej Properties?
The floor price for the QIP issue announced by Godrej Properties is ₹2,727.44 per equity share.
In which cities does Godrej Properties have a major presence?
Godrej Properties has a major presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Bengaluru, and recently entered the Hyderabad market.
What was Godrej Properties' sales booking value in the first half of the current fiscal year?
During the April-September period of the current fiscal year, Godrej Properties' sales booking value grew 89 per cent annually to over ₹13,800 crore, marking the highest-ever booking value achieved by the company during the first half of a fiscal year.
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