Godrej Properties Launches QIP to Raise ₹6,000 Crore for Expansion
Godrej Properties has launched a qualified institutional placement (QIP) to raise up to ₹6,000 crore to fund its growth plan. This move is part of the company's strategy to expand its presence in key real estate markets and achieve its ambitious sales tar
Godrej PropertiesQipReal EstateFundraisingExpansionReal Estate NewsNov 27, 2024
The company's board approved the raising of up to ₹6,000 crore through the issue of securities last month. In a regulatory filing, Godrej Properties stated that the QIP Placement Committee authorized the opening of the issue on November 27, 2024. The committee also set the floor price for the QIP issue at ₹2,727.44 per equity share. As of the latest market close, Godrej Properties' share price stood at ₹2,833.05, marking a decline of 2.35% from the previous day.
Godrej Properties is a prominent player in the Indian real estate market, with a significant presence in major cities such as Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company recently expanded into the Hyderabad market as part of its strategic growth plans. In the last fiscal year, Godrej Properties reported a significant jump in sales bookings, with an 84% increase to a record ₹22,527 crore, the highest among listed realty firms in 2023-24.
The company has set an ambitious target of achieving ₹27,000 crore in sales bookings. During the first half of the current fiscal year (April-September), Godrej Properties' sales booking value grew by 89% annually, reaching over ₹13,800 crore. This is the highest-ever booking value achieved by the company in the first half of a fiscal year.
To support its expansion and growth, Godrej Properties acquires land through various means, including outright purchases and forming partnerships with landowners for joint development projects. In the first six months of this fiscal year, the company has added 8 new land parcels, with a total estimated saleable area of around 11 million square feet and a total estimated booking value potential of approximately ₹12,650 crore.
This QIP launch is a crucial step in Godrej Properties' strategy to maintain its leadership in the real estate sector, drive innovation, and meet the growing demand for high-quality housing and commercial spaces in India's key urban centers.
Frequently Asked Questions
What is a Qualified Institutional Placement (QIP)?
A Qualified Institutional Placement (QIP) is a fundraising mechanism used by listed companies to issue equity shares to institutional investors. It allows companies to raise capital quickly and efficiently without the need for a public issue.
How much is Godrej Properties aiming to raise through the QIP?
Godrej Properties is aiming to raise up to ₹6,000 crore through the QIP to fund its growth plans.
What is the floor price for the QIP issue set by Godrej Properties?
The floor price for the QIP issue has been set at ₹2,727.44 per equity share.
What are the key markets where Godrej Properties operates?
Godrej Properties has a significant presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company recently expanded into the Hyderabad market.
What is Godrej Properties' sales target for the current fiscal year?
Godrej Properties has set a target of achieving ₹27,000 crore worth of sale bookings in the current fiscal year.
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