Godrej Properties plans to raise ₹4,000 crore via QIP

The Mumbai-based real estate company Godrej Properties Ltd is looking to raise approximately ₹4,000 crore through a Qualified Institutional Placement (QIP) with an indicative offer price of ₹2,595 per equity share, according to the term sheet reviewed by Mint.

The floor price is fixed at ₹2,727.44 per equity share, which implies a near 4% discount to Wednesday’s closing price of ₹2,831 on the NSE.

“Please note that shareholder resolution dated 31 October 2024 has approved raising of funds in one or more tranches, by issuance of securities for an amount not exceeding ₹6,000 crore only,” the term sheet read.

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On 31 October, the company had announced a ₹6,000 crore fundraise, aiming for a pre-sales growth rate of over 20% by adding new business developments and allocating a significant portion of the funds to Mumbai Metropolitan Region, which is expected to drive margin improvement.

The company plans to use the net proceeds for various purposes, including acquisition of land, land development rights or development rights (directly or indirectly), and general corporate purposes.

On the back of the strong presales in the first half of FY25, the real estate company has achieved 51% of FY25 presales guidance of ₹27,000 crore. It added six new projects with a gross development value of ₹9,600 billion in the September quarter.

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Godrej Properties' aim

Godrej Properties emphasized that demand in key markets—NCR, MMR, and Bengaluru—remains robust, with a modest single-digit price increase anticipated in the near term. 

Analysts like the company's strategy, highlighting its strong micro-market selection, margin- and cashflow-accretive project additions, expanding economic share, and growing presence in both existing markets and new regions beyond the top six-seven markets.

These plans come amid heightened activity in both primary and secondary markets, marked by numerous block deals and fundraises. Fundraising through QIPs has hit a record high this year, thanks to attractive valuations and ample liquidity, prompting big-ticket launches from major corporates. Notably, 2024 has recorded the highest number of IPOs in a decade, underscoring the growing confidence in India’s economic prospects. 

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The surge in IPOs reflects broad-based growth across sectors and increased opportunities for small and mid-sized companies, driving more firms to raise capital to fuel expansion and innovation.