Godrej Properties has got Rs 3,750 crore through the largest qualified institutional placement (QIP) of shares by a real estate company in India, said the Mumbai-based group on Tuesday.
The QIP, which launched on March 9 and closed March 15, was set at Rs 1450 per share. It saw a strong mix of investors, with nearly 90 per cent of the book going to" long-only" investors.
The company will use the money to buy land and expand business. Singapore 's GIC invested $110 million and Invesco Developing Markets Fund and other funds managed by Invesco Advisers, Inc., put in $ 150 million.
“This capital will play an important role in supporting our growth aspirations and will provide us significant opportunities to rapidly scale in the years ahead,” said Pirojsha Godrej, executive chairman of Godrej Properties.
"Bigger organised developers have seen very positive sales over the last four to five months. We have seen markets are beginning to turn. But most developers are facing liquidity issues. So there are good land deals available in the market at attractive valuations," he said in a recent interview. Godrej Properties acquired two land parcels of 4 milion sq ft in Q3.
“If market conditions pick up, land prices will reflect that. Land parcels have not fallen much in Q3 but it makes sense to buy at current levels," he said.
Godrej raised Rs 2100 crore in 2019 through QIP of shares and Rs 1,000 crore through non-convertible debentures last year for buying land. The company has built a portfolio of 50 million sq ft in 30 months and plans 12 projects in the fourth quarter of current financial year.
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