Godrej Properties' issue of shares to institutional buyers on Thursday oversubscribed by 17 per cent and the company is looking to raise about Rs. 475 crore that would be utilised to cut debt and acquire realty projects.

According to data available on the BSE, Godrej Properties received bids for 86.96 lakh shares till 1700 hours.

The size of the Institutional Placement Programme (IPP), was up to 74.43 lakh shares with a right to allot an additional up to 7.44 lakh shares in case of over subscription. Price band has been fixed at Rs. 575-620 a share.

In a statement, Godrej Properties, a part of Godrej Group, said that it had successfully concluded the issue and became the first Indian company to take IPP route after it was introduced by SEBI earlier this year.

“We are very pleased to have successfully concluded the first ever IPP in India. In difficult market conditions, this deal demonstrates the confidence investors have in our company,” company's Executive Director Pirojsha Godrej said.

According to sources, the company is looking to raise about Rs 475 crore through private placement of shares.

The large existing shareholders have participated in the bidding process along with few new large institutional buyers, they added.

Including the greenshoe option, the company would issue up to 81.87 lakh shares and raise Rs. 507.58 crore at upper band and Rs. 470.74 crore at lower band.

Godrej Properties share price closed at Rs. 619.40 at BSE, down 3.31 per cent.

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