Godrej Properties seeks to raise up to Rs 4,000 crore through a Qualified Institutional Placement (QIP) with indicative price at Rs 2,595 per share, reported CNBC-TV18 on November 27.
Earlier on November 27, the real estate firm announced a QIP at floor price of Rs 2,727.44 per share.
Citing sources, CNBC-TV18 reported that the company seeks to sell 5.5% equity (1.54 crore shares). The indicative price represents 5% discount to the floor price.
Last month, Godrej Properties' board has approved a proposal to raise up to Rs 6,000 crore in fresh funds through a variety of instruments, as part of its broader capital-raising strategy.
In a stock exchange filing, the real estate firm said its QIP Placement Committee authorised opening of the issue on November 27.
On November 27, Godrej Properties' shares on BSE closed 2.44% lower at Rs 2,831 apiece.
The latest fundraising proposal comes in continuation to Godrej Properties' capital-raising efforts. Earlier, in July 2024, the company raised Rs 1,275.40 crore by issuing non-convertible debentures (NCDs) on a private placement basis. This issuance included 93,540 unsecured redeemable NCDs valued at Rs 935.40 crore, as well as 34,000 additional NCDs amounting to Rs 340 crore, which were allotted to select investors.
The company has an aggressive project launch pipeline. According to its guidance, Godrej Properties is targeting Rs 30,000 crore worth of inventory for FY25, with about 30 percent of this already available in the market.
Last month, the company had reported a five-fold jump in its consolidated net profit to Rs 335.21 crore for the quarter ended September on higher income.
Its net profit stood at Rs 66.80 crore in the year-ago period.
Total income more than doubled to Rs 1,346.54 crore in the second quarter of this fiscal from Rs 605.11 crore in the corresponding period of the previous year, according to a regulatory filing.
The company has set a target of Rs 27,500 crore worth of sales bookings in the current 2024-25 financial year as against Rs 22,527 crore in the preceding year.
The real estate sector has emerged as the second highest in Qualified Institutional Placements (QIP) after renewable energy in India, with developers raising around Rs 12,801 crore in the first nine months of 2024, reported Moneycontrol on October 31.
Six realty firms collectively raised Rs 5,275 crore via IPOs since 2021. Macrotech Developers (Lodha Group) alone raised nearly Rs 2,500 crore.
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