Godrej Properties Ltd (GPL), a realty firm promoted by Godrej Industries Ltd and Godrej & Boyce Manufacturing Company Ltd, will enter the capital market with its proposed initial public offer (IPO) on December 9. The offer will close on December 11. GPL has fixed the price band between Rs 490 and Rs 530 per equity share for the IPO of equity shares of Rs 10 each. This is for cash at a price to be decided through a 100% book-building process and aggregating up to Rs 499.8 crore at the higher band.
Addressing a media conference, Godrej Group chairman Adi Godrej said, GPL, having real estate presence in 10 cities in India, has a compounded annual growth rate (CAGR) of 56% and profit after tax (PAT) at 90% per annum over the past five years. We are not a land owning company, but provide land to developers by entering into joint venture (JV) development with them on the basis of outright prices. Of the 82.7 mn sq ft land bank, Godrej Group holds 2.8 mn sq ft. We have completed 23 real estate projects and 5 mn sq ft for JV projects.
GPL executive director Pirojsha Godrej said the firm aims to utilise Rs 203 crore for acquiring land for its forthcoming projects and Rs 172 crore for repayment of debts. The company’s debt-to-equity ratio is 2:1. Besides, Rs 75 crore would be used for construction of the realty firm’s forthcoming projects in the next three years.
More : financialexpress.com
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