Realty firm Godrej Properties on Tuesday said it has raised ₹3,750 crore through sale of shares to institutional investors to expand the business and support future growth.
Last week, the company had launched its Qualified Institutional Placement (QIP) issue to raise up to ₹3,750 crore.
“The QIP committee of the board of directors of the company…approved the issue and allotment of 2,58,62,068 equity shares of face value ₹5 each to eligible qualified institutional buyers at the issue price of ₹1,450, against the floor price of ₹1,513.39 per share, aggregating to ₹37,49,99,98,600,” according to a regulatory filing.
The Issue opened on March 09, 2021 and closed on March 15, 2021.
Invesco Oppenheimer Developing Markets Fund, Government Of Singapore, Monetary Authority Of Singapore, Goldman Sachs Funds – Goldman Sachs Emerging Markets Equity Portfolio and Universities Superannuation Scheme Ltd (USSL) As Trustee Of Universities SUP and Baron Emerging Markets Fund are major investors who participated in the QIP.
Godrej Properties said it has identified several growth opportunities and intends to use the net proceeds for augmenting long-term capability building and scaling the business rapidly.
Pirojsha Godrej, Executive Chairman, Godrej Properties said, “We are happy to have successfully concluded our QIP process. 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.”
Godrej Properties said its largest existing external shareholder, GIC, strongly backed the QIP with an investment of $110 million.
The largest investor in the QIP was a new investor, Invesco Developing Markets Fund and certain other funds managed by Invesco Advisers, Inc, that is investing $150 million.
Last month, the board had approved raising of up to ₹3,750 crore.
“We have taken an enabling resolution. We will see now in next few weeks and months whether to actually do anything on it. If we choose to do that, rational would be to acquire projects at an attractive valuation,” Pirojsha Godrej had told PTI in an interview last month.
According to an investor presentation, the company’s sales bookings rose 25% to ₹1,488 crore in the third quarter of this fiscal.
In the first nine months of 2020-21 fiscal, sales bookings were up 16% at ₹4,093 crore.
During the full 2019-20 fiscal year, the company had posted record sales bookings of ₹5,915 crore, highest among listed realty firms.