Godrej Properties Ltd. 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. The approval, subject to shareholder consent, was finalised at the company’s board meeting held on October 01, 2024, Godrej Properties in a stock exchange notice.
The realty firm will raise the funds through one or more tranches, which could include the issuance of equity shares, fully and partly convertible debentures, non-convertible debentures (with or without warrants), and preference shares convertible into equity shares, among other eligible securities. Godrej Properties may offer these through both public and private routes, including qualified institutions placement (QIP), rights issues, or further public offers, depending on market conditions, it said.
Godrej Properties stock was trading in green on October 1, rising over 1 percent in the late morning trade at Rs 3,194.75. The share price has more than doubled in value over the past year taking the market capitalisation to near Rs 89,000 crore now. As of September 2024, the company’s share price had climbed over 60 percent since the start of the year, substantially outperforming the benchmark NSE Nifty 50, which gained 34 percent over the same one-year period.
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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 also 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. Managing Director and CEO Gaurav Pandey, in a recent interview, reiterated the company's collection target of Rs 15,000 crore for the current fiscal year.
The trading window for designated persons remains closed from September 25 to October 3, 2024, in accordance with regulatory norms. The fundraising initiative comes amid a robust demand in the real estate sector, with a slew of major project launches planned.
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