Godrej Properties’ Rs 6,000-Crore QIP Subscribed Four Times

Godrej Properties Ltd. has raised Rs 6,000 crore through the qualified institutional placement route, according to an exchange filing on Tuesday. The fundraise, which is the largest QIP by an Indian real estate developer, was oversubscribed four times.

"The issue also had a healthy mix of leading international and domestic investors including GIC, Blackrock, Aberdeen, Norges Bank, SBI Pension, and ICICI Prudential Life Insurance," the real estate developer said in a press release.

The bankers for the QIP included Jeffries, Morgan Stanley and Bank of America, it added.

Godrej Properties stated that it will use the net proceeds from the issue "to build a project pipeline that allows it to scale the business rapidly in the years ahead".

Commenting on the demand for the QIP issue, the company's executive chairperson Pirojsha Godrej said, “We greatly appreciate the confidence and support of the investment community and will do our best to ensure we utilise this capital wisely.”

While pointing that the realtor “has reset its scale in the recent years with bookings growth of 56% in FY23 and 84% in FY24”, Godrej added that the capital will allow the company “to significantly enhance its business development portfolio while maintaining a tremendously strong balance sheet”.

The company, in its release, added that it has surpassed its guidance of Rs 20,000 crore for the ongoing fiscal in the first seven months of the year and that it "continues to have strong visibility for rest of the year".

In the quarter ended Sept. 30, Godrej Properties had reported a net profit of Rs 333.8 crore, which marked a rise of 359.7% year-on-year from Rs 72.6 crore in the corresponding quarter of the previous financial year. Revenue from operations stood at Rs 1,093 crore, compared with Rs 343 crore during the same quarter last year.

Shares of Godrej Properties closed 1.42% lower at Rs 2,860.65 apiece on the BSE, compared to a 0.74% advance in the benchmark Sensex.