Godrej Properties plans QIP to buy land parcel
Godrej Group’s real estate arm Godrej Properties Ltd (GPL) has plans to raise up to Rs 3,750 crore through a qualified institutional placement (QIP) of its shares for funding new land buys and paying its joint venture (JV) partners.
GPL has already cleared the proposal for raising the funds.
Godrej said the firm has built a 50 million sq ft portfolio in the past two and a half years. The Godrej arm acquired two land parcels in the third quarter (Q3), with a potential of 4 million sq ft. GPL raised Rs 2,100 crore in 2019 through QIP of shares and Rs 1,000 crore through the issuance of non-convertible debentures last year to buy land. The company has lined up 12 projects for the fourth quarter of the current financial year (2020-21).
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The company's net debt has gone up to Rs 3,077 crore in the December quarter, from Rs 1,084 crore a year ago. Godrej told the media recently that the debt is at a "very comfortable" level and borrowings have increased because of investment in project acquisitions.
Image: GPL raised Rs 2,100 crore in 2019 through QIP of shares and Rs 1,000 crore through the issuance of non-convertible debentures last year to buy land.