Godrej Properties Raises Rs 6000 Crore via QIP: A Strategic Move to Expand Residential Real Estate

Godrej Properties, one of India's leading real estate developers, has raised Rs 6,000 crore through a Qualified Institutional Placement (QIP). The funds will be used to expand its residential real estate business amid strong demand for plots and apartment

Godrej PropertiesQipReal EstateResidential PlotsInstitutional InvestorsReal EstateDec 03, 2024

Godrej Properties Raises Rs 6000 Crore via QIP: A Strategic Move to Expand Residential Real Estate

Real Estate:NEW DELHI Godrej Properties, a leading real estate developer in India, has successfully raised Rs 6,000 crore by selling shares to institutional investors through a Qualified Institutional Placement (QIP). This strategic move comes as the company looks to expand its business amidst a robust demand for residential plots and apartments.In a regulatory filing on Monday, Godrej Properties announced that the board's QIP Placement Committee approved the closure of the issue. The panel set the issue price at Rs 2,595 per equity share, which is a 4.86 per cent discount to the floor price of Rs 2,727.44 per equity share. The committee also approved the allocation of 2,31,21,387 equity shares to eligible qualified institutional buyers.The company launched the QIP issue last week with the aim of raising up to Rs 6,000 crore. Last month, Godrej Properties' board had approved the raising of up to Rs 6,000 crore through the issue of securities. This significant capital infusion will further bolster the company's expansion plans.Godrej Properties is one of the leading developers in the country, with a strong presence in key regions such as Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company has recently expanded its footprint into the Hyderabad market. In the last fiscal year, the company's sale bookings surged by 84 per cent to a record Rs 22,527 crore, making it the highest among listed realty firms in 2023-24.Godrej Properties has set an ambitious target of achieving Rs 27,000 crore worth of sale bookings. During the April-September period of the current fiscal year, the company's sale bookings value grew by 89 per cent annually to over Rs 13,800 crore, marking the highest-ever booking value achieved by Godrej Properties in the first half of a fiscal year.To fuel its expansion, Godrej Properties acquires land through outright purchases and forms partnerships with landowners for joint development. In the first six months of this fiscal year, the company has added 8 new land parcels, encompassing a total estimated saleable area of about 11 million square feet, with a total estimated booking value potential of around Rs 12,650 crore.This major capital raise is expected to significantly enhance Godrej Properties' financial strength and operational capabilities, enabling the company to capitalize on the growing demand for high-quality residential properties in various major cities across India.

Frequently Asked Questions

What is a Qualified Institutional Placement (QIP)?

A Qualified Institutional Placement (QIP) is a capital-raising mechanism used by listed companies in India to issue shares to qualified institutional buyers. It is a faster and more flexible way to raise funds compared to a public issue.

How much did Godrej Properties raise through its QIP issue?

Godrej Properties raised Rs 6,000 crore through its QIP issue.

What will Godrej Properties use the funds raised from QIP for?

The funds raised from the QIP will be used to expand Godrej Properties' residential real estate business amidst strong demand for plots and apartments.

What is the current presence of Godrej Properties in India?

Godrej Properties has a strong presence in key regions such as Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The company has recently expanded into the Hyderabad market.

What is Godrej Properties' target for sale bookings in the current fiscal year?

Godrej Properties has set a target of achieving Rs 27,000 crore worth of sale bookings in the current fiscal year.

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