Godrej Properties raises Rs 6,000 cr through QIP, primarily to acquire land for future development

New Delhi, Dec 3 (PTI) Real estate firm Godrej Properties Ltd raises funds $It raised Rs 6,000 crore by selling shares through the qualified institutional placement (QIP) route to institutional investors including Singapore sovereign wealth firm GIC and SBI Pension as it looks to expand its business amid strong demand for residential land and apartments.

On November 27, the company launched a QIP issuance, raising the most $60 billion rupees. The company raised the money by diluting nearly 8% of its stake in a QIP offering, which closed on Monday.

The QIP Placing Committee of the Board of Directors reviewed and approved the issuance price of QIP $$2,595 per share, a discount of $132.44 (4.86% of the base price) is the base price $$2,727.44 per share. It also approved the allotment of 2,31,21,387 shares to eligible institutional buyers.

Godrej Properties said in a regulatory filing on Tuesday that strong demand for the QIP issuance was about four times the size of the QIP.

The issuance also attracted a number of leading international and domestic investors, including GIC, Blackrock, Aberdeen, Norges Bank, SBI Pension and ICICI Prudential Life Insurance.

Godrej Properties said that as a result of the QIP, its “net assets increased by over 50% while equity dilution was 7.68%”.

As of September 30, 2024, the company’s asset-liability ratio will drop from 0.7:1 to below 0.2:1.

Commenting on the financing, Pirojsha Godrej, Executive Chairman of Godrej Properties Ltd, said: “We are extremely grateful for the confidence and support from the investment community and will do our best to ensure that we utilize this capital wisely.”

“This financing will enable Godrej Properties to significantly strengthen its business development portfolio while maintaining an extremely strong balance sheet. We remain focused on growing scale through continued market share growth and margin expansion,” he said.

He said Godrej Properties has rescaled in recent years and has recorded a 56% growth in bookings in 2022-23 and 84% in 2023-24.

Pirojsha expressed confidence that the company has the ability to achieve rapid growth in booking value for the third consecutive year, with sales bookings increasing by 90% in the first half of this fiscal year.

Godrej Properties is one of the leading developers in the country. It has major operations in Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune and Bengaluru. Recently it has entered the Hyderabad market.

In the last fiscal year, the company’s sales bookings surged 84% to a record high $22,527 crore, the highest among listed real estate companies in 2023-24.

Godrej Properties sets goals to achieve $Sales bookings for the financial year 2024-25 stand at Rs 27,000 crore.

Godrej Properties’ sales booking value grew 89% annually during April-September this financial year, surpassing $138 billion rupees. This is the highest booking value achieved by Godrej Properties in the first half of a financial year.

To expand its housing business, Godrej Properties acquires land through outright purchase and enters into partnerships with landowners for co-development.

Godrej Properties has added eight new land parcels in the first six months of the financial year with an expected total salable area of ​​approximately 11 million sq ft and an estimated gross booking value potential of approximately $12,650 Crores.