Press Trust of India
Godrej Properties launched its qualified institutional placement (QIP) on Wednesday, selling equity shares to investors to raise Rs. 6,000 crore to fund its growth plan. Last month, the company’s board approved raising Rs. 6,000 crore through the issue of securities.
In a regulatory filling, Godrej Properties informed that the QIP Placement Committee authorized the opening of the issue on November 27, 2024.
The panel also approved the floor price for the QIP issue, being Rs. 2,727.44 per equity share. Godrej Properties share price closed at Rs. 2,833.05 apiece on Wednesday, down 2.35 percent from Tuesday.
The company is one of the leading developers in the country. It has a major presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. It has entered into Hyderabad market recently.
In the last fiscal, the company’s sales booking jumped 84 percent to record Rs. 22,527 crore, the highest amongst listed realty firms in 2023-24.
Godrej Properties has a set target of achieving Rs. 27,000 crore worth of sale bookings.
During the April-September period of this fiscal, Godrej Properties’ sales booking value grew 89 percent annually to over Rs. 13,800 crore. This is the highest-ever booking value achieved by Godrej Properties during the first half of a fiscal year.
To expand its housing business, Godrej Properties acquires land through outright purchases as well as forming partnerships with landowners for joint development.
Godrej Properties has added 8 new land parcels in the first six months of this fiscal with a total estimated saleable area of about 11 million square feet and a total estimated booking value potential of around Rs. 12,650 crore.
Realty firm Godrej Properties to launch residential projects worth Rs. 30,000 crore this fiscal across major cities to achieve 20 percent growth in sales bookings amid strong demand, its executive chairperson Pirojsha Godrej said.
Earlier this year, in an interview with PTI, Pirojsha said, “We have given a sales bookings guidance of Rs. 27,000 crore for the current fiscal, a 20 percent growth from high base in 2023-24.”
In the last fiscal, the company’s sale bookings jumped 84 percent to a record Rs. 22,527 crore, from Rs. 12,323 crore in the preceding year. This is the highest sales reported so far by any listed entity for FY 24.
Pirojsha said, the housing demand continues to be strong, especially for reputed brands.
“It (2023-24 fiscal) was a great year overall, whether you look at launches, sales, collection from customers, business development, deliveries of projects, cash flow and profit. We are really excited to see the kind of momentum in the business.”
He expected housing demand to sustain in the coming years.
To tap this demand, Pirojsha said the company has lined up launches of multiple projects across Delhi-NCR region, Mumbai-Metropolitan Region (MMR), Bengaluru, Pune, and Hyderabad markets.
“We are planning to launch six projects in Delhi, Gurugram, and Noida this fiscal” he said.
According to an investors presentation, Godrej Properties plans to launch 21.9 million (219 lakh) square feet this fiscal with an estimated sales booking value of Rs. 30,000 crore.
Not only launches and sales, Pirojsha said the company would continue acquiring land parcels for future development and also set up deliveries of projects.
“The significant levels of business development (land acquisition) we have executed in previous years at favourable terms allowed us to scale our bookings by 84 percent to Rs. 22,257 crore in 2023-24 and become the largest publicly listed real estate developer in India by sales,” Pirojsha said.
He noted that the housing sector has been strong over the past three years and exuded confidence that the ‘sectoral tailwinds’ would continue over the next few years.
