Godrej Properties Expands QIP to ₹6,000 Cr to Fuel Growth

Godrej Properties, one of India’s leading real estate developers, has raised the size of its Qualified Institutional Placement (QIP) issue to ₹6,000 crore from the earlier announced ₹4,000 crore. The company had announced earlier its QIP to raise up to ₹4,000 crore by selling equity shares to investors. The funds will be utilized to drive the company’s growth plans, particularly in the residential real estate segment, which has been experiencing strong demand.

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Godrej Properties’ QIP issue was launched on Wednesday, following approvals from the company’s board and shareholders through a special resolution in October 2024. Market sources indicate that the issue has garnered significant interest from both domestic and global institutional investors. The company is expected to raise the full amount of ₹6,000 crore, with the issue likely to close by Thursday.

In its regulatory filing, Godrej Properties confirmed that its QIP Placement Committee has set the floor price for the issue at ₹2,727.44 per equity share. Additionally, the company has the option to offer a discount of up to 5% on the floor price to attract investors.

Godrej Properties' strategic focus on growing its residential portfolio is in line with the plan to increase the QIP size. The company's sales bookings have increased remarkably, reaching a record ₹22,527 crore in FY2023–24, an 84% year-over-year increase. Godrej Properties is targeting to reach ₹27,000 crore in sales bookings.

In the first half of the ongoing fiscal (April-September 2024), the company recorded sales bookings worth ₹13,800 crore, marking an impressive 89% annual growth. This figure represents the highest-ever booking value for the company during the first six months of any financial year.

To support this growth, Godrej Properties has been aggressively acquiring land through outright purchases and joint development agreements. The company added eight new land parcels in the first half of the current fiscal year, totaling over 11 million square feet of saleable space and estimated booking value of ₹12,650 crore.

On Wednesday, Godrej Properties share price were trading at ₹2,839.65 on the NSE, showing a marginal increase of 0.20%. It reached a day’s high of ₹2,903.15.

In Conclusion 

The company’s strong financial performance and strategic land acquisitions underline its confidence in the residential real estate market. With extensive presence in key markets such as Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, Godrej Properties has also recently ventured into Hyderabad to broaden its geographical reach. The enhanced QIP size demonstrates Godrej Properties’ commitment to capitalizing on market opportunities and expanding its business aggressively. With strong investor interest and a track record of record-breaking sales, the company is well-positioned to achieve its ambitious growth targets in the years ahead.