Realtor Godrej Properties has closed its placement of shares to institutional investors - the largest QIP by a real estate company - after raising Rs 6,000 crore with nearly four-fold higher demand for the issue, the company said on December 3.
Pirojsha Godrej, Executive Chairperson, Godrej Properties said the funds will be utilized for growth capital. "We are delighted with the response to our QIP process. We greatly appreciate the confidence and support of the investment community and will do our best to ensure we utilize this capital wisely," Pirojsha added.
The company saw long only demand from investors, a statement said, "The issue saw a strong demand of ~4X the size of the QIP and was fully covered with long only demand." Godrej confirmed that the had a healthy mix of leading international and domestic investors such as GIC, Blackrock, Aberdeen, Norges Bank, SBI Pension, as well as ICICI Prudential life Insurance.
"This capital raise will allow GPL to significantly enhance its business development portfolio while maintaining a tremendously strong balance sheet," Pirojsha Godrej said.
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GPL added that the QIP has resulted in the net worth increasing by more than 50%, while the equity dilution is 7.68%. After the issue, GPL’s Net-debt-to-equity ratio will improve to below 0.2:1 from 0.7:1 as of September 30.
Jeffries, Morgan Stanley, Bank of America, and Kotak were the bankers for the QIP.
The realtor has been clocking 'tremendous growth' in its bookings, which has grown from 56% in FY23 to 84% in FY24. For H1FY25, GPL has achieved a bookings growth of 90%, and the company said it is set to 'substantially surpass' its FY24 booking value guidance of Rs 27,000 crore. Godrej Properties was the largest real estate developer in terms of bookings in FY25.
"GPL is well positioned to deliver a 3rd consecutive year of rapid growth in booking value with 90% growth in H1 bookings, launches planned across 7 cities in Q3, and an even stronger
launch pipeline for Q4," Pirojsha Godrej said.
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